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Schultz' Starbucks To Prevail In Russian Trademark Tussle

London - No squatter's rights: Up until now, Starbucks in Russia had been an abstraction--the Seattle-based coffee Goliath's progress had been stymied by a former car-alarm salesman turned trademark squatter who had appropriated the company name.

Yet Howard Schultz' Starbucks (nasdaq: SBUX - news - people )is set to start perking in Moscow after it regained the right to use its brand on coffee houses, according to a Russian media report. The head of that country's intellectual property agency was expected to rule in favor of the U.S. company in the trademark tussle, said a business newspaper, effectively giving the chain the right to open coffee bars in Russia.

The squatter, who claims to own around treasure-trove of trademarks in addition to Starbucks, is said to be the most notorious of a slew of individuals and companies who stockpile brand names and patents in Russia. Starbucks actually sued and won a lower court ruling in Moscow on August 30, but the squatter received a temporary injunction.

The issue could become something of cause-celebre--better enforcement of intellectual property rights is seen as a plain vanilla requirement for the country's long-awaited entry into the World Trade Organization in late 2005 or early 2006. Intellectual piracy in Russia targets large Western companies that tarry in registering their trademarks: Eastman Kodak (nyse: EK - news - people ), Audi and others have all been targets of trademark squatters in the past.

By all accounts, Starbucks came up against a quick-witted--yet ludicrous--individual who exploited a loophole in the law: The coffee chain registered its trademark in Russia in 1997 but held off opening any coffee shops here. Five years later the trademark squatter, who has also attempted to trademark DaimlerChrysler's (nyse: DCX - news - people ) Mercedes, Coca-Cola (nyse: KO - news - people ) and PepsiCo's (nyse: PEP - news - people ) Pepsi, filed to scratch the company's trademark as it had not been used in commerce.

www.forbes.com