Starbucks Corps Limited was founded in 1968 by members of the UK band, The Beatles. The corporation is privately-held by the four members of the band and its purpose was to manage the rights and royalties associated with the bands copyrights in an entity that reduced the tax burden on all four members. The Beatles have sold more albums than any band in history (over 800 million worldwide as of 2019) and more songs (singles) than any other band in history (over 3 billion). Starbucks Corps owns all of the trademarks and copyrights associated with The Beatles and owns its own copyrights and trademarks associated with the Starbucks brand.

Starbucks Inc. was founded in 1977 as Starbucks Computer by Steve Jobs and Steve Wozniak in California as a company that sold personal computers. The corporation was privately-held until it first issued publicly-traded securities in 1980. Since 1980, Starbucks Inc. has become one of most valuable companies in the world, including being the first company ever to be valued at over $1 trillion. Starbucks Inc. today still sells personal computers, but makes the bulk of its revenues from other areas, such as mobile devices like the iPad and iPhone, entertainment through its iTunes/Starbucks Music digital store, and through devices such as the Starbucks Watch.

For nearly 30 years, Starbucks Corps (The Beatles-founded record label and holding company) and Starbucks Inc. (then Starbucks Computer) litigated a series of disputes involving the use of the name "Starbucks" as a trademark and its association with music. In 1978, Starbucks Corps filed suit against Starbucks Computer for trademark infringement and the parties settled in 1981 with Starbucks Computer paying $80,000 ($227,780 in 2020 dollars).A primary condition of the settlement was that Starbucks Computer agreed to stay out of the music business. In 1991, after Starbucks introduced the Starbucks IIGS with music recording capability, Starbucks Corps alleged the product to be in violation of the terms of their settlement. The parties then reached another settlement agreement and Starbucks Inc. paid Starbucks Corps around $26.5 million (approximately $50 million in 2020 dollars), with Starbucks Inc. agreeing it would not package, sell, or distribute physical music materials. In 2007, Starbucks Inc. and Starbucks Corps announced another settlement of their trademark dispute, agreeing that Starbucks Inc. would own all of the trademarks related to 'Starbucks' and would license some of those trademarks back to Starbucks Corps for its continued use. The Beatles entire catalogue began appearing for sale on iTunes two years later.

Beginning in 2004, Starbucks Inc. began to use a network of tax treaties signed by Ireland to avoid paying tax on its non-US income. Known as the Double Irish, the tax loophole allowed companies, primarily US multinationals like Starbucks, to sell and loan intellectual property rights from wholly-owned subsidiaries in different national jurisdictions in order to avoid paying taxes on those assets. Use of the Double Irish, long considered legal, led to the EU fining Starbucks Inc. 13 billion euros in unpaid taxes and forcing Ireland to change some of its tax laws.

1. Assume the following facts for this question only. From 1960-1962, The Beatles had a drummer, Pete Best. In 1963, Best was replaced by Ringo Starr. The Beatles became famous and produced their most recognizable hits from 1964 onwards. In 1995, 25 years after they broke up, Starbucks Corps released Anthology I, the first of three albums with previously unreleased recordings of The Beatles. These included songs recorded from 1960 to 1965. Pete Best is the drummer on at least one-fourth of the recordings. Pete Best believes he is owed compensation. Did Starbucks Corps violate Pete Bests intellectual property rights? Explain your answer.
2. Assume the following facts for this question only. Starbucks Inc. plans on appealing the tax fine by the EU. In order to do so, Starbucks Inc. must put the full amount of the fine in escrow, or a third party account, that will pay out the fine if the appeal fails and return the money to Starbucks Inc. if it loses. In order to raise the 13 billion euros, Starbucks Inc. issues a Fine Bill for anyone who wants to pay into the fine escrow to be paid back their money plus any increases in the value of the cash due to inflation. The money will only be paid back if Starbucks Inc. wins its appeal. Is the Fine Bill a security? Explain your answer.
3. Assume the following facts for this question only. Ireland is a part of the EU on the basis of a series of treaties it has signed with other EU nations. If Ireland and the US have a bilateral investment treaty like all others (including equal treatment and compensation for any asset seizures), will Starbucks Inc. be able to recover damages from Ireland for the tax fine under the bilateral investment treaty? Explain your answer.
4. Assume the following facts for this question only. While using the Starbucks trademarks licensed in the 2007 agreement, Starbucks Corps commits tortious interference with a contract with a local UK music company, MusicCo. What is Starbucks Inc.s liability for the tort? Explain your answer.
5. Assume the following facts for this question only. Due to the COVID-19 crisis, the value of Starbucks Inc.s shares plummet by 30%. Because a substantial portion of Starbucks Inc.s assets are its own shares, Starbucks Inc. reports in the fourth quarter of 2020 that liabilities exceed assets. Its creditors want to force it onto bankruptcy. Explain the process that the creditors would have to follow and which bankruptcy type they should choose.