In its Trademark Act violation complaint against Damrong Maslae, Starbucks Corp is also demanding a monthly payment of 30,000 baht plus legal fees.
The US-based chain says the vendor has designed his own trademark in a way that is similar to Starbucks, featuring a round logo and dark green background with a human figure inside the circle.
The brand name, Starbung ("Bung" is Mr Damrong's nickname), is also written in capital letters and placed in the same position as the Starbucks name on its logo.
According to a report by ASTV Manager, Starbucks filed a petition with the Central Intellectual Property and International Trade Court, seeking the arrest of Mr Damrong and his younger brother Damras Maslae, as well as financial compensation. The court set a trial date for Nov 4.
The company's petition states that on Sept 18 it obtained a court injunction ordering Mr Damrong and Mr Damras to stop using the words "STARBUNG COFFEE" and the green logo for their products, clothing and paper wrappers for coffee cups. However, they declined to follow the injunction, the company said.
Starbucks also filed a criminal complaint with the same court against both men for copying its trademark and sought a court order to terminate the use of the brothers' logo. It demanded the compensation of 300,000 baht with 7.5% interest per year until they stop using the logo. As well, it is seeking monthly compensation of 30,000 baht and payment for legal fees.
The company said it owned the trademarks "STARBUCK" and "STARBUCKS" with a mermaid figure inside a green circle. It has registered the trademark all over the world, including Thailand, and its mark is publicly well-known.
In the petition, Starbucks said the defendants sold coffee and tea from a push cart at Ban Phra Arthit in Bangkok. In September 2012, it claimed, the brothers showed their intention to violate the Trademark Act by creating a similar mark, which could make the public misunderstand and believe that their mark was that of Starbucks.
The company said it sent a warning letter to the men on Oct 17 last year but they ignored it. Since the brothers have expanded the use of their Starbung mark on stickers, paper wrappers and clothes. The company sent another letter but Mr Damrong instead demanded 3 million baht from Starbucks.
Starbucks said it had asked the Intellectual Property Department to bring Mr Damrong into the arbitration system but the proposal was rejected.
Mr Damrong said he had adjusted the design of his mark since he received the letter from Starbucks. His mark now has a figure of a man which represents him inside the green circle, which also has a star and crescent and halal mark. The green colour derives from his Islamic religion.
Explaining the request for 3 million baht, Mr Damrong said that if Starbucks wanted him to stop using the mark, he would sell his business to the company for that amount.
Meanwhile, Mr Damrong said he would fight the case but he had no money to pay the requested compensation.
He says he sells his coffee drinks for only 20-30 baht each - about one-third of what Starbucks charges - and still has to care for his six children from his earnings.
Starbucks, which operates nearly 21,000 coffee shops in 62 countries, including 171 stores in Thailand, reported revenue of US$13.3 billion (412 billion baht) last year and a net profit of $1.38 billion.