'He Doesn't Make Coffee, but He Controls 'Starbucks' in Russia'

article by ANDREW KRAMER here.

 

MOSCOW, Oct. 11 - Sergei A. Zuykov is a lawyer for Starbucks in Russia. Only the Starbucks he represents brews no coffee and owns no shops. Its business consists of trying to sell its name back to the other Starbucks - the better-known company from Seattle.

A tall, strapping 39-year-old former car alarm salesman turned trademark squatter, Mr. Zuykov has stalled Starbucks' entry into one of the fastest growing retail markets in Europe while competitors, both homegrown and international brands, have been springing up like mushrooms after the rain.

"It's not fair, but it's legal," Mr. Zuykov said of his grip on the Starbucks trademark here. "I do not steal. You cannot steal what is already yours. When we applied, Starbucks was not so interested in coming to Russia."

Starbucks sued and won a lower court ruling in Moscow on Aug. 30. But Mr. Zuykov asked for and received a temporary injunction. A showdown in the long-running case, seen as a test of intellectual property rights here, is coming at an appellate hearing on Oct. 17.