At first glance, the Starbuds logo may seem strikingly similar to the Starbucks logo. Both logos feature a two-tailed mermaid placed in a central circle, surrounded by a double green ring. In the case of Starbuds, the word “STARBUDS” appears at the top of the circle, and “FLOWERS” at the bottom. The differences? The Starbuds logo does not include the distinctive stars present in the Starbucks logo, but instead features marijuana leaves on either side of the mermaid. Additionally, the Starbuds mermaid appears to be smoking, as indicated by the joint in her right hand and the cloud of smoke rising above her head.
Starbucks accuses Starbuds of numerous infringements of intellectual property rights, including copyright and trademark violations. The lawsuit highlights that Starbucks owns two copyrights to the siren image, at least 13 graphic trademarks covering the siren logo in 14 different classes, and 21 word trademarks for “STARBUCKS” or “STARBUCKS COFFEE” in a similar number of classes.
Many observers see this case as a classic David versus Goliath battle, where the outcome seems predetermined. Does Starbuds have any chance of defending itself? In theory, there are possible defenses, such as fair use or parody, but none of these defenses seem applicable in this case, as Starbucks is undoubtedly a well-known brand. Starbuds uses its trademark to sell marijuana-related products, which – interestingly – are sold from a truck.
Fair use applies to good-faith use of a mark for descriptive purposes or in its original meaning. Such a defense could be effective if Starbuds were merely describing its products, but the use of a logo that incorporates all of the most important features of the Starbucks mark exceeds the bounds of fair use. It is worth noting that the Washington-based company has registered the word mark “STARBUDS” (registration no. 4766937, class 25), which indicates that the use of the name “Starbuds” alone does not constitute an infringement of Starbucks’ rights.
The only visible difference between Starbuds and Starbucks is the range of products they offer. Starbuds specializes in marijuana-related products, which in itself limits the possibilities for trademark registration. Starbucks, on the other hand, is known for its coffee-related products, clothing, coffee shops, and franchises. Nevertheless, the coffee giant also raises claims of trademark dilution in the lawsuit, which is understandable given the brand’s enormous recognition.
If the court finds that Starbuds infringes on Starbucks’ trademarks, Starbucks will be entitled to an injunction prohibiting the use of the trademark, damages, disgorgement of profits, and reimbursement of legal costs. Starbuds is taking a significant risk with its actions and its attempt to defend itself, and the decision to continue operating with the current logo seems highly risky.
However, we must wait for the next stages of the process, as this is only the initial stage. Given the scope of the lawsuit and the potential consequences, a settlement between the parties cannot be ruled out.
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