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• Starbucks is facing a lawsuit from Balmuccino LLC, accusing the coffee giant of stealing their coffee-flavored lip balm concept.
• Balmuccino alleges that Starbucks launched a similar product after a meeting where they shared prototypes and confidential information.
• This is the third lawsuit between the two companies, with previous cases dismissed on procedural grounds.
• The case highlights the importance of intellectual property rights and the potential consequences of their violation.

Starbucks, the Seattle-based coffee giant, finds itself embroiled in a legal battle for the third time with Balmuccino LLC, a Los Angeles-based company.

The lawsuit, filed in Manhattan federal court on August 16, 2024, accuses Starbucks of pilfering Balmuccino's innovative concept of coffee-flavored lipstick and lip gloss. Balmuccino's leadership includes a sister-in-law of renowned TV doctor Mehmet Oz. The company alleges that it began developing coffee-flavored lip balms back in 2016.

The idea was pitched to Starbucks during a meeting in October 2018 at Starbucks' New York office. During this meeting, Balmuccino claims to have provided prototypes and other confidential information to Starbucks. The meeting was reportedly brokered by Dr. Oz, who contacted Starbucks' Chief Executive Howard Schultz to propose a potential joint venture.

However, Balmuccino alleges that Starbucks took undue advantage of this meeting and stole its fully developed concept for lip balms. In April 2019, Starbucks launched its S'mores Frappuccino Sip Kit, which included lipstick and gloss in four shades: Campfire Spark, Chocolicious Bliss, Graham Glam, and Marshmallow Glow. Balmuccino asserts that this product line is a direct rip-off of its original concept.

This belief stems from New York's legal provision that allows plaintiffs to pause the statute of limitations when they sue in the wrong forum and a court finds it lacked jurisdiction. This is not the first time Balmuccino has taken legal action against Starbucks. The company originally sued Starbucks in Los Angeles in October 2019. The case, Balmuccino LLC v. Starbucks Corp, is now being heard in the U.S. District Court, Southern District of New York, under No. 24-06214.

The lawsuit also states that Starbucks did not compensate Balmuccino for selling the Sip Kits. As a result, Balmuccino is seeking unspecified compensatory and punitive damages from Starbucks. The company believes that its lawsuit is not too late, despite previous dismissals on procedural grounds by a Seattle federal judge in July 2023.