Starbucks recently discovered an infringement of its intellectual property rights in Pakistan. As a result, the American company decided to file a complaint with the Pakistan Competition Commission (CCP), stating that a coffee shop based in Lahore, namely Options International, is selling “Starbucks coffee” and thus fraudulently using the “STARBUCKS” trademarks in its business, misleading consumers and harming the interests of the American company. The well-known coffee chain clarified that it has never opened any franchise in Pakistan and therefore has not authorized anyone to use its renowned trademark there.
Interestingly, the CCP took a keen interest in the matter and decided to thoroughly investigate the complaint and the potential extent of the violations. Following an inquiry, it was found that Options International, the operator of the coffee shop, had indeed violated Article 10 of the Pakistani Competition Act by disseminating false and misleading information, deceiving consumers, and harming the business interests of the complainant.
Importantly, during the proceedings, Options International admitted to the violation and ceased its further unlawful activities.
Before reaching a final decision, the CCP stated that although Options International had ceased using the “STARBUCKS” trademarks in its coffee shop and had also committed to complying with the directives issued to it, the unauthorized use of the trademarks had persisted for a significant period, which could have significantly harmed the reputation and interests of the American company. Therefore, in its decision, the CCP imposed a penalty of 5 million Pakistani Rupees on the infringing party. Furthermore, the CCP ordered Options International to inform the public through press releases for three consecutive days about its illegal use of the “STARBUCKS” trademarks.
Interestingly, Options International appealed the CCP’s decision to the so-called Competition Appellate Tribunal (CAT). CAT not only dismissed the appeal but also increased the penalty in its decision from the originally imposed 5 million PKR to 6 million PKR.
As can be seen, appealing a decision does not always yield a positive outcome. However, more importantly, the above ruling shows that it is worth fighting for one’s intellectual property rights even in the most remote countries.
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