(FORTUNE Magazine) – It looks like Starbucks. It smells like Starbucks. It even sounds like Starbucks--that is, if you speak Chinese. The two new Shanghai Xing Ba Ke coffee shops, the latest of which opened this summer, have nothing to do with Starbucks, but the logo, as well as the name (loose translation: Shanghai Starbucks), means this place could easily be confused with the real thing.

Copycats are hardly new in China: "Every kind of intellectual-property violation is going on here," says Peter Humphrey, country manager at risk consultancy Kroll in Shanghai. But overt brand borrowing is increasing, says James Zimmerman, a partner with law firm Squire Sanders & Dempsey in Beijing. Everything from KFC to Napa Valley wines have been copied.

Starbucks has 29 of its own stores in the city, and according to the company, it registered several variations of its Chinese name, including Xing Ba Ke, a few years ago. Spokeswoman Caroline Wong in Hong Kong says the company prefers to resolve disputes amicably but will consider legal action to protect its trademark.

The Xing Ba Ke shops do differ from Starbucks in that they have waiters and higher prices. "We have a totally different operation and strategy," says Mao Yibo, the general manager of Xing Ba Ke. He says his company has registered the name Shanghai Xing Ba Ke, plans to open 30 to 50 stores over the next two years, and has a legal advisor should Starbucks file suit.

Experts say Starbucks should take action before the interlopers expand but caution that it faces a tough battle. "Enforcing intellectual-property rights in China takes time, persistence, and all legal and political tools available," says Zimmerman. Given that Starbucks has sued everyone from a coffee shop called Sambucks to an outfit that sold a brew called Mr. Charbucks, don't be surprised if the chain does whatever it takes to get a bang for its buck (or in this case its ba ke).

--Carlye Adler