Starbucks Faces Yet Another Lawsuit

Starbucks Faces Yet Another Lawsuit

Starbucks is in hot water once again, facing a third lawsuit over alleged theft of a coffee-flavored lip balm concept from an independent creator.

At a Glance

  • Balmuccino files third lawsuit against Starbucks for allegedly stealing coffee-flavored lip balm idea
  • Previous two lawsuits were dismissed on procedural grounds
  • Balmuccino claims it pitched the concept to Starbucks in 2018, facilitated by Dr. Mehmet Oz
  • Starbucks launched similar products in 2019 without compensating Balmuccino
  • Starbucks has not commented on the lawsuit

The Brewing Controversy

Coffee giant Starbucks finds itself embroiled in a legal battle as Balmuccino, a small independent creator, files its third lawsuit alleging theft of a coffee-flavored lip balm concept. The complaint, filed in Manhattan federal court, marks the latest chapter in an ongoing dispute that has captured the attention of both the business and legal communities.

The lawsuit stems from a 2018 pitch meeting where Balmuccino presented its innovative coffee-flavored lip balm idea to Starbucks executives. Interestingly, this meeting was facilitated by none other than TV personality Dr. Mehmet Oz, who reached out to then-Starbucks CEO Howard Schultz to arrange the presentation.

The Alleged Theft

According to Balmuccino, Starbucks took their concept and ran with it, launching the “S’mores Frappuccino Sip Kit” in April 2019. This kit included lip products similar to those proposed by Balmuccino, but the small company claims they received no compensation or credit for the idea.

The lawsuit alleges that Balmuccino provided prototypes and confidential information during the pitch meeting, which Starbucks then used to create their own line of coffee-flavored lip products. The “S’mores Frappuccino Sip Kit” included lipstick and gloss in four shades, eerily similar to what Balmuccino had proposed.

Legal Challenges and Persistence

This isn’t the first time Balmuccino has taken legal action against Starbucks. The company originally filed suit in Los Angeles in October 2019. However, both previous attempts were dismissed on procedural grounds, with the most recent dismissal occurring in July 2023 by a Seattle federal judge.

Undeterred, Balmuccino argues that this latest lawsuit is timely under New York laws. These laws allow for the tolling of statutes of limitations when a case is initially filed in the wrong jurisdiction. The company is seeking unspecified compensatory and punitive damages for the alleged theft of their intellectual property.

As of now, Starbucks has not commented on the lawsuit, leaving many to speculate about the outcome of this David vs. Goliath legal battle. The case, officially titled Balmuccino LLC v. Starbucks Corp, U.S. District Court, Southern District of New York, No. 24-06214, will be closely watched by those interested in intellectual property rights and the power dynamics between large corporations and independent creators.