Oxfam Urges Company to Review Strategy and Sign Licensing Agreement
Oxfam International (Boston)
PRESS RELEASE
October 26, 2006
Posted to the web October 26, 2006
Global coffee giant Starbucks has opposed a plan by Ethiopia to gain more control over its coffee trade and a larger share of the earnings for millions of coffee farmers living in poverty, international agency Oxfam revealed today.
Last year the Ethiopian government filed applications to trademark its most famous coffee names, Sidamo, Harar and Yirgacheffe. Securing the rights to these names would enable Ethiopia to capture more value from the trade, by controlling their use in the market and thereby enabling farmers to receive a greater share of the retail price. Ethiopia’s coffee industry and farmers could earn an estimated $88 million (USD) extra per year.
$6 billion company Starbucks prompted protests against the applications to be filed with the US Patent and Trademark Office (USPTO). The USPTO has denied Ethiopia’s applications for Sidamo and Harar, creating serious obstacles for its project.
Seth Petchers, of Oxfam International said: “Starbucks’ behavior is indefensible. The company must change tactics and set an example for others by supporting Ethiopia’s plan to help millions of struggling farmers earn a greater share of the profits.”
“Intellectual property ownership now makes up a huge proportion of the total value of world trade but rich countries and businesses capture most of this. Ethiopia, the birthplace of coffee, and one of the poorest countries in the world, is trying to assert its rights and capture more value from its product. It should be helped, not hindered,” said Ron Layton, chief executive of Light Years IP, a Washington DC-based intellectual property rights organization that is helping to advise the Ethiopian government.
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Read more: http://allafrica.com/stories/200610260790.html
I think that it is very unfortunate what Starbucks is doing to these Ethiopian coffee farmers. Starbucks is a very profitable company and should not have a problem giving these farmers what they deserve. When I hear things like this it makes me wonder if I should even drink Starbucks coffee anymore!
This is an outrageous situation. As large of a corporation as Starbucks is, they should be doing something to help the continent, but this is just another clear case of exploitation. It is really sad that a company such as Starbucks could hold so much weight and shift the authority of the USPTO. How can the people of this Ethiopia, or any other country on the continent rid themselves of such control and manipulation that is inflicted upon them by countries like the US. Africa tries to take back what is rightfully theirs and are still not able to. The power imbalance is clear. Something need to be done about this.
I dont agree with what Starbucks is doing. Instead of helping Ethiopia uplift themselves from poverty they are assisting in their distress. It is unbelieveable to me that a wealthy company such as Starbucks is unwilling to help the needy with obtaining a portion of the money from the coffee that is making Starbucks so successful.
it is not suprizig that a big bussiness/ company is try to take over a smaller one. can these big bussiness such as starbucks help ethiopia with their money problem, by jobs, and bring in more money to the area.
strategies like this for companies that have a big industry name wanting to take over smaller ones or countries supplies is something not out of the but its kind of messed up because their just being greedy and this country like this is very needy
Once again, we see how large companies and businesses take advantage of small time businesses and entrepeneuring. Sometime of compromise, strictly benefiting Ethiopian farmers, needs to come into play.
Does Ethiopia have no means of securing the rights to the three names?
Not to negate the angle of this report, but Starbucks is the biggest purchaser of Certified Fair Trade coffee beans from several regions. I feel like Starbucks must have some other reason for not wanting to cough up $88 mil, since it is already taking hits to profit with the CFT coffee it purchases.