When Starbucks decided to enter the Chinese market in the late 90s, things weren't as simple as just serving coffee. The company faced a problem: its name had already been registered by others. The Chinese version, Xingbake (星巴克), which sounds very similar to "Starbucks," was already being used by local companies wanting to capitalize on the global brand's success.
This kind of situation is quite common in China, where some local businesses play the "preventive registration" game. They essentially register the names of foreign brands before they enter the market, hoping to sell the rights or confuse customers. It's like reserving a movie seat and waiting for someone to pay you for it.
In 2003, Starbucks had to take legal action against Shanghai Xingbake Coffee Co., Ltd., a local chain using an almost identical name. Their defense? They argued that Xingbake meant "star coffee" and had no connection to the American chain. However, the Chinese courts sided with Starbucks, recognizing its global fame. A win for the mermaid!
But that wasn’t the end of it. Starbucks also had to protect its logo— the iconic mermaid— as many local brands began copying it. They registered their trademark in every possible category: coffee, food, merchandise, and even digital services. This ensured no one else could profit from their name.
The key takeaway for Starbucks in China was clear: when expanding into such a vast and competitive market, you need to be prepared. Register your trademark from day one, monitor it closely, and, if necessary, fight to protect it. Because, in the end, coffee tastes better when the brand is secure! ☕
Here’s an interesting YouTube video that delves deeper into the issue:
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