Starbucks & Ethiopia Sign An Agreement; Oxfam Ends Campaign

Coffee Politics Stands Down

Surprise!

Oxfam announced today that Starbucks and Ethiopia signed an agreement and that it ended the campaign against Starbucks. The organization’s press release reads:

"Starbucks and Ethiopia signed a distribution, marketing and licensing agreement today that ends their trademark dispute and brings them together in partnership to help Ethiopian coffee farmers. International relief and development agency Oxfam welcomes the agreement that has the potential to give farmers a fairer share of the profits for their world-renowned coffee brands, Sidamo, Harar and Yirgacheffe."

I re-read the press releases issued by the parties involved including LYIP, Starbucks, Ethiopia, and Oxfam, but the vernacular is going over my head. For instance, what does “recognition of designations” and that the recognition includes “the license of certain trademarks” mean?

All in all, I think the following two paragraphs hold the key to the agreement:

“It provides a framework for mutual cooperation to promote the recognition of the Harrar, Sidamo and Yirgacheffe designations and to strengthen the Ethiopian coffee sector, and includes the license of certain trademarks.

"The agreement allows Starbucks to use and promote these designations in markets both where trademarks exist for the coffee designations as well as where they may not, in accordance with agreed terms and conditions."

Unpublished Starbucks' internal email, obtained by Coffee Politics, has the following comforting statement:

“The agreement reaffirms that Starbucks will make no claim of ownership of the designations claimed by Ethiopia and will not oppose applications or registrations made by Ethiopia.”

As we continue to second-guess what is in the terms of agreement, my hope is in the words uttered by Starbucks Chairman Howard Schultz during the 2007 Annual Shareholders’ Meeting held in Seattle on March 21, 2007. He said:

“I can only tell you that as we stand here before you, we are highly conscious and sensitive of the issues, and we will do the right thing that most importantly, at the end of the day, that will be pro-farmer.”

Now that an agreement has been signed, I hope it is indeed “pro-farmer.”

Before the dust settles, I would like to alert the parties that there are still important tasks that need equal attention as noted here. Another area of interest is the implications of the agreement just signed by Starbucks and the government on other licensees.

In the mean time, and out of curiosity, I will try to access and examine the details of this agreement and will share what I find out.

Coffee Politics Stands-Down

Now that the campaign is officially over, Coffee Politics stands down. As a result, please expect less number of postings than usual. Though I will continue to follow the trademark project very closely, my focus will be on other projects.

The problem facing the Ethiopian coffee farmers is too complex to be confined to the trademark dispute with Starbucks. The Ethiopian coffee sector faces similar problems that other coffee growers face in the global trade. The outcome of the coffee trademark project itself is still uncertain. Therefore, I will be around to offer my opinion at different capacities. My primary attention will be, however, on Coffee Monitor, the all new open source media.

My move will not be abrupt though.

In the coming few weeks, in addition to publicizing any findings on the licensing agreement between Starbucks and Ethiopia, I will write about some very interesting, behind-the-scene happenings I observed during this trademark dispute. This was one of the most interesting high-profile disputes in a recent history and I was privileged, as an independent observer, to have fist-hand access to some important information. I have captured on my notes some hilarious and some not too funny episodes. Indeed, it was a breath-taking experience to observe how each side acted and/or reacted in their ways. My future postings will include some of these facts.

I hope you have enjoyed the travel in time with Coffee Politics. I also hope that you’ll find this blog to be of value in the future.

My sincere thanks goes to each of you for being a loyal visitor of the blog. Your comments, ideas, and suggestions have helped enrich our knowledge about coffee and IP laws. Special thanks to those who have helped during the campaign and stood by the side of the Ethiopian coffee farmers.
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Starbucks and Ethiopian Intellectual Property Office (EIPO) Partner to Promote Ethiopia's Coffee and Benefit the Country's Coffee Farmers

(CSRwire) SEATTLE & ADDIS ABABA, Ethiopia--(BUSINESS WIRE)--June 20,2007--Representatives of the Government of the Federal Democratic Republic of Ethiopia and senior leaders from Starbucks Coffee Company (Nasdaq:SBUX) today announced that they have concluded an agreement regarding distribution, marketing and licensing that recognizes the importance and integrity of Ethiopia's specialty coffee designations.

"Ethiopia salutes Starbucks for its exemplary display of global corporate citizenship. This alliance highlights the significance of visionary entrepreneurs in creating space for win-win engagements between corporations that operate globally and developing countries such as ours," said Dr. Samuel Assefa, the Ethiopian Ambassador to theUnited States.

"Starbucks has reiterated its commitment that it will not oppose Ethiopia's efforts to obtain trademarks for its specialty coffees. What we have learned in our dealings with Starbucks over the last several months is that the company listens to its stakeholders' concerns and is attentive to the plight of the poor farmers who produce the finest specialty coffees in the world," continued Ambassador Samuel Assefa.

The agreement is an important step in the ongoing collaboration between the Government of Ethiopia and Starbucks to promote Ethiopia's specialty coffees. It provides a framework for mutual cooperation to promote the recognition of the Harrar, Sidamo and Yirgacheffe designations and to strengthen the Ethiopian coffee sector, and includes the license of certain trademarks. The agreement allows Starbucks to use and promote these designations in markets both where trademarks exist for the coffee designations as well as where they may not, in accordance with agreed terms and conditions.

"Our customers know that some of the highest quality coffees in the world come from Ethiopia," said Howard Schultz, Starbucks chairman, "We are extremely pleased that this agreement supports both the Ethiopian specialty coffee industry and the farmers and their communities that produce these fine coffees while allowing us to bring them to our customers around the world."

This agreement will expand on the continuing efforts to promote and sell Ethiopia's exceptionally high quality coffees.

"This agreement marks an important milestone in our efforts to promote and protect Ethiopia's specialty coffee designations. Having the commitment and support of Starbucks will help enhance the quality of Ethiopian fine coffees and improve the income of farmers and traders," commented Getachew Mengistie, Ethiopian Intellectual Property Office Director General, "This agreement provides cause to be very optimistic about the future of the Ethiopian coffee industry."

The Government of Ethiopia and Starbucks Coffee look forward to continuing to develop their relationship and collaborate on ways to help build the Ethiopian coffee sector.