So Bold! Illegally Operating 'Starbucks'

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Bog Starbucks in Baghdad Continues Operating Despite Legal Threats

Recently, according to a report by ABC News, a "Starbucks" coffee shop in Baghdad, the capital of Iraq, continues to operate despite facing legal threats. The coffee shop uses authentic Starbucks cups and serves genuine Starbucks coffee. From the outdoor signage to the napkins inside the store, everything is printed with the official mermaid logo of the multinational coffee chain, creating a convincing imitation.

In reality, however, the store is an elaborately designed counterfeit establishment—they have not obtained operating authorization from Starbucks headquarters. All Starbucks merchandise in the store is imported from neighboring countries. Such blatant infringement of the trademark of this billion-dollar coffee company has prompted Starbucks to file a lawsuit in an attempt to stop this trademark violation.

According to reports, the Associated Press interviewed three Iraqi legal professionals involved in the case who stated that Starbucks had already hired company lawyers to file a lawsuit as early as early 2020 to close the unlicensed store. However, the case was suspended after the counterfeit store owner allegedly threatened the lawyers hired by Starbucks headquarters. The counterfeit store owner, Amin Makhsusi, told the lawyers to act cautiously, as he maintains friendly connections with militias and influential political figures, including armed factions.

However, when interviewed again in September, Makhsusi denied threatening the lawyers, stating that he is just a businessman and his connections with influential political figures are necessary to avoid problems in Iraq's business environment, especially considering the current unstable situation for commerce in Iraq.

Makhsusi had attempted to apply for a license through Starbucks' official Middle Eastern distributor but was rejected. He then tried to communicate with company officials through his contacts in the United States, which was also unsuccessful.

Ultimately, he decided to open anyway, accepting the consequences. Makhsusi described his decision to open a "Starbucks" branch as a victory over adversity, claiming that his mermaid logo cups, stir sticks, napkins, and other Starbucks merchandise were all obtained through his connections in Turkey and Europe. The coffee is also authentic Starbucks coffee, with no difference from official Starbucks stores.

Makhsusi stated that he has already had one meeting with lawyers hired by Starbucks, attempting to reach an understanding with the coffee chain company, but so far, no solution has been reached.

Starbucks considers the Bog Starbucks in Baghdad as just one example of the serious infringement and piracy issues in the local area. Iraq has become a hub of trademark infringement and piracy, with everything from retail and online streaming to coffee products being counterfeited. Beyond weak regulatory enforcement, the audacity of intellectual property infringers is largely due to protection from powerful groups.

According to companies affected by piracy and U.S. officials familiar with related cases, piracy not only damages the reputation of well-known brands and causes huge losses for businesses but can even endanger lives.

When responding to the Associated Press's request for comment, a Starbucks spokesperson stated: "The store in Baghdad is not operated by Starbucks or authorized business partners. We are determining our next course of action. Starbucks has invested significantly in developing our brand and intellectual property, and we have an obligation to protect our intellectual property from infringement and maintain our exclusive rights to it."

Image source: Internet

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