Chinese Court Backs Starbucks in Name Case

A Chinese court has sided with Starbucks Corp. in a trademark dispute, fining a Shanghai coffeehouse company and ordering it to change its name because it was too similar to that of the American company, news reports said.

The Shanghai No. 2 Intermediate People’s Court said Shanghai Xingbake Cafe Corp. engaged in “illegitimate competition” by using Starbucks’ Chinese name and imitating the design of its cafes, the China Daily said. Xing (pronounced “shing”) means star, and bake (“bah kuh”) sounds like “bucks.”

Judge Lu Guoqiang ordered Shanghai Xingbake to pay Seattle-based Starbucks 500,000 yuan, or $62,000, in damages, the China Daily and the Shanghai Daily reported.