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WEEKLY NEWS - DECEMBER 03, 2007

This article is part of MIP Week, a weekly email newsletter written by the editors of Managing IP magazine. Take a one week trial to Managing IP and find many more related articles.

Starbucks heals coffee rift with Ethiopia

Emma Barraclough, London

More than a year after Starbucks led efforts to oppose the Ethiopian government’s attempts to register three types of coffee as trade marks, the head of the US coffee shop chain has announced plans to open a farmer support centre in Addis Ababa

Howard Schultz, Starbucks’ chairman, revealed the plan during a trip last week to Ethiopia. The visit forms part of efforts to mend relations between the corporation and the country, which grows some of the world’s highest-quality coffee.

Starbucks last year withdrew its attempts to block the trade marking of Sidamo, Harrar and Yirgacheffe following a public relations backlash. The country has now secured registrations in more than 30 countries, and is negotiating royalty-free licences with retailers and wholesalers giving them the right to use the brand names.

Starbucks agreed to sign a licence deal in June.

In a statement, Starbucks said the company will open what it called a Starbucks Farmer Support Center in the Ethiopian capital in 2008. It said the facility will enable the company to work collaboratively with Ethiopian farmers to raise both the quality and production of the country’s high-quality specialty coffees.

"We will be working closely with Starbucks to bring badly needed investment and technology to our coffee industry, as well as brand recognition and promotion for our high-grade Arabica beans," said Meles Zenawi, the prime minister of Ethiopia. "These measures will afford Ethiopia new leverage in the global coffee market."

The November issue of Managing IP includes an interview with Getachew Mengistie, director-general of the Ethiopian Intellectual Property Office. The October issue of the magazine carried an article about how developing countries are exploring ways of raising their income by securing IP rights for products traditionally regarded as commodities.



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