Unicorn-Drink Lawsuit Is Settled -- WSJ
September 06 2017 - 3:03AM
Dow Jones News
By Corinne Ramey
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (September 6, 2017).
Starbucks Corp. and a Brooklyn cafe settled a
trademark-infringement lawsuit involving unicorn-themed drinks,
according to court documents.
In May, Montauk Juice Factory Inc., the parent company of cafe
the End Brooklyn in the Williamsburg neighborhood, sued Starbucks,
alleging the coffee chain infringed on its trademark and confused
its customers with a drink called the Unicorn Frappuccino.
Starbucks denied its drink was inspired by the cafe's similarly
named one, the Unicorn Latte.
Montauk Juice had asked for $10 million in damages in the
lawsuit. Court documents didn't specify a settlement amount.
The suit was dismissed with prejudice, meaning the cafe is
barred from suing Starbucks over the drink in the future, said
documents filed in federal court in the Eastern District of New
York.
In a statement, Starbucks said: "The Action has been amicably
resolved on confidential terms." A lawyer for Montauk Juice said
the parties had reached a confidential settlement and "we are
pleased to be able to move on."
The End said it began selling its Unicorn Latte in December. The
ingredients included cold-pressed ginger, lemon juice, dates and
cashews, according to the suit. It also contained a blue-green
algae harvested from an Oregon lake, the cafe's co-founder said.In
legal documents, Montauk Juice said the $9 drink accounted for 25%
of the End's revenue.
Starbucks's beverage, which it sold for several days in April,
included "a sweet dusting of pink powder, blended into a crème
Frappuccino with mango syrup and layered with a pleasantly sour
blue drizzle," according to a news release. Starbucks said its
drink was inspired by unicorn-themed food and drinks popular on
social media.
The beverage is no longer sold in Starbucks stores. The Unicorn
Latte is still on the menu at the End. Neither drink contained
coffee.
"The size of and scope of Starbucks' product launch was designed
so that the Unicorn Frappuccino would eclipse the Unicorn Latte in
the market, thereby harming plaintiffs and confusing their
customers," the lawsuit said.
(END) Dow Jones Newswires
September 06, 2017 02:48 ET (06:48 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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