Starbucks and Ethiopian Coffee

The Reporter (Addis Ababa)
6 May 2007
Namrud Berhane

Representatives from Ethiopia and coffee giant Starbucks disclosed on Wednesday that an agreement "in principle" had been reached for the signing of the licensing, distribution and marketing of Ethiopian coffee names.

The agreement, which is expected to be signed this month, will require Starbucks to indicate to final customers the name of the coffee in their blend, and that it originates from Ethiopia, Wondwossen Belete, Intellectual Property Law, Policy and Plan Director at the Ethiopian Intellectual Property Office told The Reporter.

"This is a royalty free agreement and there are no immediate financial gains. There is however significant long term benefit for Ethiopia and its coffee producers, as more consumers are attracted to Ethiopian coffee types," Wondwossen said.

In 2005, with the backing of the UK Department for International Development (DfID), Ethiopia had launched a worldwide effort to obtain Trademarks for its three coffee types - Harar, Sidamo, and Yirgachefe.

A year earlier however Starbucks had applied at the United States Patent and Trademark Office (USPTO) to be given the rights for the coffee name Sherkena Sun-ried Sidamo.

"We made our complaints and Starbucks was convinced of the points that we raised. Consequently, they withdrew their claim in 2005. However the National Coffee Association of America (NCA) opposed and the USPTO turned down our request again," Wondwossn said.

The application for Harar was rejected by the USPTO on the ground that it lacks distinctiveness. While the law in the US does not allow for names of places to be registered as trademarks, there is argument in the US that the name Harar, like Sidamo and Yirgachefe, has acquired a secondary meaning associated with coffee. Ethiopia, with the assistance of the US legal firm Arnold and Porter, is considering to take further action and is working on available options.

"We are still working on that. We have forwarded supporting facts such as that the coffee type was being exported from Ethiopia to the US since the 1950s. So the agreement with Starbucks in the US is only for the Yirgachefe type so far," Wondwossen said during a telephone interview with The Reporter.
Elsewhere in Europe, there has been opposition in Germany for the certification of the Sidamo brand.
In Japan also, prior application by a Japanese company to be granted trademark for of the Harar coffee has prevented Ethiopia from obtaining it.

So far it is only in Canada that Ethiopia has managed to get its three coffee names certified.
Ethiopian Intellectual Property Office Director General Getachew Mengiste, who has been heading the negotiations with Starbucks, said on Wednesday, "Ethiopia is firmly committed to work in partnership with all international specialty coffee companies and distributors of its fine coffees, including Harar, Sidamo and Yirgachefe. We realize our approach to trademarking and licensing these coffee brands that originate in and represent the best of Ethiopia's coffee heritage is a new approach that not only meets the needs of small Ethiopian fine coffee farmers and traders but also the coffee roasting and distributing companies and their customers."