Everything from the signboard outside down to the napkins bears the official emblem of the top international coffee chain.
The Starbucks saga is just one example of what U.S. officials and companies believe is a growing problem. Iraq has emerged as a hub for trademark violation and piracy that cuts across sectors, from retail to broadcasting and pharmaceuticals. Regulation is weak, they say, while perpetrators of intellectual property violations can continue doing business largely because they enjoy cover by powerful groups.
“As Iraq endeavors to diversify its economy beyond the energy sector and attract foreign investment in knowledge-based sectors, it is critical that companies know their patents and intellectual property will be respected and protected by the government,” said Steve Lutes, vice president of Middle East Affairs at the U.S. Chamber of Commerce.Makhsusi insists he tried the legal route but was denied a license from Starbucks’ regional agent based in Kuwait.
Makhsusi said doing business in Iraq requires good relations with armed groups, the bulk of whom are part of the official state security apparatus. The broadcaster beIN has sent cease-and-desist letters to Earthlink, Iraq’s largest internet service provider. Earthlink offers subscribers a free streaming service, Shabakaty, which beIN alleges is composed almost entirely of pirated content. Iraq’s Communications Ministry, which partners with Earthlink, did not respond to a request for comment.
At least two U.S. pharmaceutical companies have approached the U.S. Chamber of Commerce with complaints that their trademark was being used to sell counterfeit life-saving medication by Iraqi companies.
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