Black Bear's Misappropriation and Misuse of the Starbucks Mark

        12.     Defendant Black Bear has sought improperly to capitalize on Starbucks

investment in the creation and positive reputation of the Starbucks Mark, and the resulting

popularity that the Starbucks Mark has attained. Specifically, Black Bear manufactures and sells

a blend of roasted coffee under the name "Charbucks Blend." Inclusion of the term "char" as

part of the Charbucks name immediately creates, in the minds of many consumers, the image of

charred coffee beans, which has obvious negative connotations among potential purchasers of

coffee products. Further, "Charbucks" is so similar to "Starbucks" that consumers who hear or

read the Charbucks name will instantly think of Starbucks.

        13.     After learning of Black Bear's use of the Charbucks name, counsel for Starbucks

contacted Black Bear and demanded that it cease and desist from all further use of the Charbucks

mark. After extended negotiations. Black Bear and Plaintiffs reached an agreement in principle

pursuant to which Black Bear agreed to terminate its use of the Charbucks name. Black Bear,

however, refused to finalize this agreement, and continued to sell Charbucks Blend coffee.

        14.     Plaintiffs are informed and believe and thereupon allege that, for some period of

time following their negotiations with Black Bear, defendant ceased selling Charbucks Blend

products. However, Plaintiffs subsequently learned that Black Bear had renewed its sale of

Charbucks coffee products, and Plaintiffs therefore renewed their demand that Black Bear

terminate its use of this mark. To date, however, Black Bear has failed and refused to comply

with this demand. Plaintiffs are informed and believe that Black Bear is continuing to sell

Charbucks Blend, including to consumers located in the State of New York and the Southern

District of New York, including by means of orders taken via its Web site and by a toll free

telephone ordering system.

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