“Dumb Starbucks” and the Risk of Brand Hijacking

At Mascola Group we have a habit of reminding our clients, “you don’t own your brand, your customers do.” In today’s era of blogs, social media and review sites like Yelp, the thinking behind that statement has become truer than ever.

Of course this statement isn’t entirely accurate. John Doe isn’t going to walk in off the street tomorrow and assume the position of CMO at your organization, right? Probably not, but there are some cracks in the laws protecting corporate identity ownership that were recently tested by an unlikely challenger, exposing the risk of brand hijacking.

For over two decades Comedy Central has thrived at the expense of others – making big business out of poking fun at companies, television shows, celebrities, politicians and even other networks. But in a recent episode of their new show Nathan for You, the network  brilliantly showed just how far satire can really go when host Nathan Fielder was able to successfully open a fake Starbucks coffee shop earlier this year under the protection of it being a parodic art gallery, aptly named “Dumb Starbucks.”

By first establishing himself as a parody artist (which was hilariously done through a series of open mic performances in LA), the comedian was then able to argue that “Dumb Starbucks” was simply his latest satirical installment. The store had the look of a Starbucks, the logo of a Starbucks and the caffeinated offerings of a Starbucks, but with the simple addition of “Dumb” in front of every branded item. Fielder even went as far as including standard Starbucks impulse offerings at the counter, like a “Dumb Norah Jones Duets” CD. See his explanation of the prank below.

This comedic experiment quickly grew beyond everyone’s expectations and became a national news story. Fielder and the folks at Comedy Central thought they had just created a great joke, but quickly realized they had actually stumbled upon a legitimate legal loophole. Few know the full extent of legal warnings Starbucks shot across the bow of Comedy Central, but in the end it was the health department, not a team of lawyers, that shut down “Dumb Starbucks.” A perfect comedic ending, but one that I’m sure doesn’t provide great comfort to other national brands at risk of parody. It might not be long before we see a “Stupid McDonald’s” or “Idiotic Walmart” pop up. And although these brands have the money and power to promptly shut down any would-be pranksters, reacting the wrong way can have lasting effects.

The solution? Know the laws protecting your brand, but don’t be afraid to roll with the punches. Even Starbucks admitted the humor in the prank, and like other parodies in the past, the financial impact was minor and quickly faded. In this case, the coffee brand was wise to leave the matter alone publicly, but we can only guess what amusing responses they could have generated. Have any good ones in mind? Share them in the Comments and the winner gets a $5 Dumb Starbucks gift card.

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