Fraudulent use of international trademark: Lahore cafe fined Rs 60 Lakh for fake Starbucks branding

The Competition Appellate Tribunal (CAT) has dismissed the appeal filed by M/s Options International (SMC-Pvt.) Limited, a Pakistani company penalized by the Competition Commission of Pakistan (CCP) for the fraudulent use of the international coffee chain Starbucks branding in its restaurants.

In its decision, the tribunal increased the penalty from the originally imposed Rs. 5 million to Rs. 6 million.

Starbucks, a chain of coffee shops with headquarters in Seattle, filed a lawsuit against a Pakistani restaurant for exploiting Starbucks trademarks in its branding and selling “Starbucks Coffee” without authorization.

The food giant claimed that the cafe in Lahore was deceiving customers and hurting its company. The business declared that it hasn’t established a franchise in Pakistan.

After conducting an investigation, CCP found that Options International had violated Section 10 of the Competition Act by disseminating false and misleading information, misleading customers, and undermining Starbucks’ commercial objectives.

Options International acknowledged the infraction during the investigation. At Starbucks’ request, CCP also ordered a temporary injunction telling Options International not to use the Starbucks trade name and logo on labels or packaging without permission.

Options International had already challenged CCP’s ruling in the Competition Tribunal. The Tribunal rejected the appeal and upped the fine on the grounds that Options had persisted in using the trademark after signing a contract with CCP.