A copyright battle is brewing in Shanghai that could eventually lead to a tempest in a coffee cup.

Us-based Starbucks Coffee Inter-national is considering taking legal action against a local company, which registered a name that sounds similar to the ubiquitous coffee shop and also uses a green logo that is nearly identical to that owned by the world's most famous coffee chain.

The local shop registered Xingbake in January, 2000 before Starbucks opened its first store in Shanghai on Huaihai Road on May 4, 2000.

While starbucks doesn't use the name Xingbake in its stores, many Chinese people refer to the chain by that name. Xing means star in Chinese, and bake sounds a little like bucks, making it a popular name for the chain across China.

The city is now home to 30 Starbucks outlets, while Xingbake has two stores, one on Hongqiao Road at the Xianxia Tennis Center and the other in the Laojiefu Building on Nanjing Road E.

Besides its questionable name, the Xingbake stores also sport a round green logo, which looks very similar to Starbucks' at first glance.

"We have reported the issue to our headquarters in the United States, inquiring whether we should take any legal action," said Summer Ji, marketing and public relations manager for Shanghai President, the local partner of Starbucks.

"We will take the issue very seriously," she added.

The company wouldn't comment on rumors that it put off legal action in hopes of buying the name Xingbake.

Xingbake claimed it never violated the trademark of Starbucks or copied the design of the logo.

"We invented 'Xingbake' as our brand when we planned to start a cafe business in Shanghai and it is just a coincidence that our name is the same with Chinese version of Starbuck," said the local company's general manager named Mao.

"The logo was designed by our own staff. To be frank, I hadn't heard of Starbucks at that time, so how could I imitate its brand or logo?"

He also pointed out that when the company registered "Xingbake," most Chinese people were not familiar with Starbucks.

Besides, he said the two coffee chains have different serving styles. As Starbucks is self-served, Xingbake has waiters and waitresses to serve customers. "Starbucks focuses on fashionable people in their 20s and 30s but we target customers like middle-aged businessmen."

Xingbake has ambitious plans to open 30 to 50 stores on Nanjing Road, Huaihai Road and Pudong, most of which will be franchised outlets.

Legal experts said it is illegal to register a brandname that simply copies or translates a famous name owned by someone else.

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