Ethiopia and Starbucks

Africa Focus: Ethiopia, Starbucks sign coffee trade licensing agreement

Ethiopia and the U.S.-based coffee chain Starbucks signed a coffee trade licensing agreement on Wednesday in Washington, the Ethiopian Intellectual Property Office (EIPO) said.

EIPO said in a statement that the agreement will be a stepping- stone for Ethiopia in its effort to register and promote its specialty coffees names across the world.

According to the agreement, Starbucks will trade a number of coffee specialties with Ethiopia from its various coffee producing areas and will sell them in a way that protects Ethiopia's benefits.

This agreement will enable Ethiopia to use its specialty coffee names as a trademark and it is a step forward in the efforts being carried out to register and promote Ethiopia's products, including coffee in the world market, EIPO said.

The office said a month-long negotiation was carried out between Ethiopia and Starbucks in the United States and finally the company agreed to sign the agreement in a condition that will keep Ethiopia's right over its coffee names.

The office recalled that a memorandum of understanding was previously signed between Ethiopia and Starbucks, in which the latter agreed to sign a licensing, distribution and marketing agreement, recognizing Ethiopia's specialty coffee names, Harar, Sidamo and Yirgacheffe.

Up to now, some 15 international coffee companies, including Starbucks, have signed trademark agreements with Ethiopia, the office said.

In October 2006, the British relief organization Oxfam launched an international public campaign to encourage Starbucks to engage with Ethiopia directly on the issue of the county's ownership of its specialty coffee names.

Over 93,000 supporters have called on Starbucks to sign a licensing agreement with Ethiopia.

The goal is to help Ethiopia's coffee sector including farmers cooperatives earn more from its valuable coffee brands, increase its negotiation leverage through control of the marks, and ultimately increase the price received for its best coffee, coffee dealers said.

Ethiopia, Africa's largest coffee producer and the birthplace of coffee bean, exported 183,000 tones worth 427 million U.S. dollar in the 2005/06 season. The country's total annual coffee production, including that used for domestic consumption, was 330, 000 tones last season, according to the Ethiopian Coffee Exporters' Association.

Source: Xinhua