Starbucks Wins Over Chinese Rival
on Trademark Infringement

US coffee chain, Starbucks Corporation finally won in the trademark infringement lawsuit against Shanghai Xingbake Coffee Shop Ltd. before the Shanghai High People's court. The defendant was ordered to change its company name so that it will not contain word "Xingbake" and to pay 500,000 yuan (US$62,500) of compensation.

In 2004, Starbucks sued Shanghai Xingbake on the grounds of trademark infringement and claimed for 500,000 yuan (US$62,500) of compensation. "Xing" translates as "star" and "bake" has a similar sound to "bucks".

In 2005, the Shanghai No. 2 Intermediate People's Court ruled that "Starbucks" and its Chinese translation "Xingbake" are qualified as well-known trademarks in China. The court held that Shanghai Xingbake has infringed Starbucks' well-known marks. At the beginning of 2006, Shanghai Xingbake appealed to the Shanghai High People's Court.

The Shanghai High People's Court finally ruled that Shanghai Xingbake's unauthorized use of Starbucks' Chinese translation "Xingbake", Starbucks and similar logo has constituted trademark infringement.