Jonathan Menkes: Cannabis Product Trademarks

Jonathan, who specializes in trademark counseling and brand protection at Knobbe Martens, recently joined our podcast host TG Branfalt for an interview that focuses on what cannabis entrepreneurs can do to protect their brand and other intellectual properties, including specific products and even strains.

In this interview, Jonathan offers advice for avoiding trademark infringement lawsuits, explains the history behind some of the biggest trademark infringement cases in the cannabis industry, discusses the small differences between trademark and copyright law, and more.

Tune in via the media player below or scroll further down to read along with a full transcript of this week’s Ganjapreneur.com podcast episode.


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TG Branfalt: Hey there, I’m your host, TG Branfalt and thank you for listening to the Ganjapreneur.com podcast, where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists and industry stakeholders. Today I’m joined by Jonathan Menkes. He’s a California-based trademark attorney with Knobbe Martens. Johnathan’s practice includes domestic and foreign trademark selection and clearance, trademark audits, unfair competition, false advertising, and notice and takedown procedures involving copyright and trademark claims. How you doing this morning, Johnathan?

Jonathan Menkes: I’m doing terrific, thank you so much for having me. I’m really excited to be here.

TG Branfalt: I’m delighted, man, I love having attorneys and lawyers, very bright specialists on the show. So this isn’t something that we’ve discussed before but before we get into your expertise on trademark law, tell me about yourself, your background, how did you end up serving cannabis clients?

Jonathan Menkes: Great question. It’s fairly interesting because I represent a number of clients in different industries, fashion and clothing, food and beverage, medical devices, among many others. And one day a few years ago I had a dispensary locate our service, a client that needed our assistance with trademarks and brand protection, and it just so happens that company was Weedmaps, which you may have heard of.

And frankly, it just was a snowball effect from there where once you represent one player in the industry, your name gets out there, word gets out. Hopefully you do a good job for people and they appreciate that, and then they just start calling or emailing and so it’s been fantastic. So that’s been a few years now since I got that first call, but it’s just been a fantastic journey ever since.

TG Branfalt: So it doesn’t sound like something that you went to law school sort of in the back of your mind you wanted to serve this space. What interested you most about this sector?

Jonathan Menkes: It’s a great question, and on that point I might just note it seems law schools nowadays are beginning to offer cannabis classes. I didn’t have such a class offered when I was taking classes back in law school, way back when. But it’s so interesting to me because there’s so much unknown. Certainly we know trademarks and we know it very well, but there are certain unique aspects of trademarks in the cannabis and CBD space that aren’t present in other industries, and I’m sure we’ll great into that later.

But the nuances, the gray areas, it’s all very exciting because there are very little answers and lots of questions. And it’s really enjoyable for me as a practitioner to work with clients, figure out where they are in the space. Do they have an established trademark portfolio, are they just beginning, and work with them through that journey. And that’s what’s most exciting to me is walking with them, figuring this out as we go. Like I said, there are certain things we know for sure in trademark law, certain standards if you will, but there’s so much unknown that that’s where I think it’s most interesting to me.

TG Branfalt: So you mention that they don’t teach cannabis in law schools. This is something that is also the case in medical schools and other really advanced education systems. What do you think it’s going to take to bring these classes to the masses, if you will?

Jonathan Menkes: It’s a great question and I think we’re just starting to see this happen. I met with a professor from UCI School of Law who does offer a cannabis class to his law students, and I don’t know how many law schools out there are offering such a unique program but I think because of the interest… it’s just remarkable how much interest this space generates, and I think even before we get to federal legalization or perhaps decriminalization, more and more people are going to be interested, and that will drive more and more universities I believe to offering more courses and curriculum in this space.

TG Branfalt: So tell me about some of the cannabis trademark cases. The Tapatio case comes to mind, the Gorilla Glue case comes to mind, both dealt with trademark issues. One was a little more focused on the image, the Tapatio… the copyright image there. But tell me more about what were the issues with these cases, and what were the results?

Jonathan Menkes: Certainly. So we’ll start with Tapatio, and I know I have to give a shameless shout out to one of my colleagues, or two of my colleagues, Johnathan Hyman, Victoria Ellis, they wrote a fantastic article, Stirring the Pot: Recent Trademark Infringement Claims from Major Brands In the Cannabis Field. And I would just point people to that very succinct and wonderful read, and it does show the images in question for the Tapatio and Trapatio hot sauce as an issue.

But with that shameless plug aside, the case really involves people being too cute and too close to the well-known Tapatio branding and the imagery, as you pointed out. And so the first lawsuit was filed against Smoker’s Paradise & More, Inc. It was a design mark that looked strikingly similar to Tapatio’s hot sauce, and Tapatio did not find the joke very funny at all. And so they filed for trademark infringement and trademark dilution by tarnishment, which I’m sure we’ll go into in a bit. And they also filed a second lawsuit against TCG Industries for offering THC infused hot sauce under the mark Trapatio. And there similar claims were asserted, as far as trademark infringement, unfair competition, and dilution.

And it’s a big deal. I think if there’s one takeaway from that particular case is that being cute doesn’t mean it’s okay to do. Certainly defending a federal lawsuit is not inexpensive and it’s not a quick process, and I think the take home there for my clients and for many clients is that you really have to be careful when you’re adopting a brand. You really shouldn’t be looking at well-known brands. I know the Girl Scouts Cookies have filed a number of complaints, if not sending cease and desist letters. Hershey’s is very protective of their brand. And so it’s far better to use your money and resources in coming up with a unique brand on your own that doesn’t look anything like an established brand for a non-cannabis company, because the results otherwise might end up in a lawsuit.

TG Branfalt: So what was the result there? I saw some images that the Trapatio, they took away the sombrero and that still wasn’t enough?

Jonathan Menkes: So there were two different complaints and so with the second one, the one that I mentioned, TCG Industries, there it was interesting because they had a settlement agreement previously entered into. And then when TCG Industries allegedly reached out to Tapatio to say, “We’ve got this new mark and logo, is it okay for us to use this?” Tapatio declined. TCG Industries went forward and then the lawsuit resulted there. I don’t know where they are in the stages of the lawsuit, whether it’s still pending. My sense is that these cases tend to settle, they don’t tend to go very far, but even working on settlement can itself be a very expensive process.

As far as Gorilla Glue, there a settlement agreement was reached. My understanding is there was no monetary payment as part of the settlement. However Gorilla Glue, the name Gorilla Glue had to be changed to something else. For instance, I think it was GG strains, or there was some other mark there that they had to use that didn’t incorporate Gorilla Glue, that it had to be some other unique name.

TG Branfalt: So what I remember writing about this when it was happening, both of these cases, and what struck me about the Gorilla Glue case was that there were no images being used and that you can’t really trademark a strain name, but you can. Can you sort of walk me through that confusion?

Jonathan Menkes: Certainly. So strain names, you can in theory have a trademark for a strain name. So a strain… any product that you have out there, a t-shirt, a medical device, all of these, if you have a trademark which identifies the goods or services of your company from those of another, it serves as a trademark.

And the tricky part is twofold. One is that if you pick a trademark that is confusingly similar or if not identical to a well-known brand, then you can’t do that under trademark law. That’s not permitted.

The second is if someone in particular, or rather everybody refers to a type of product with a specific term. So what do I mean by that? If you have headphones, if you’re a producer of headphones, let’s say they happen to be wireless. You can’t come up with Wireless Headphones as the name of your, quote, trademark, because that’s the generic name for what the product does or is, it has a feature. And so if people refer to wireless headphones, they don’t think of any one brand, they think it’s just the type of product that it is. By contrast, if you have Bose headphones or Apple earbuds or something that is a trademark, a source identifier, that’s where you have trademark protection.

So to the same extent with strain names, I can see a situation where a person comes up with a specific strain, they protect it and consumers understand that perhaps it comes from one specific source. But if it does not come from a specific source, if many people are producing it, there’s really no policing going on by the brand owner, then it’s really open to the public and it’s become what we call in trademark parlance a generic term.

TG Branfalt: So let’s stick on Gorilla Glue for a second, there’s sort of a lot of discrepancy within the space about calling strains Gorilla Glue say in Oregon compared to California, right? They say that they might call it Gorilla Glue, but it doesn’t have the same sort of genetic makeup. So how do you go about proving that you have the actual product when it comes to strain names?

Jonathan Menkes: So that raises an interesting question, rather, of consumer deception. If a consumer assumes that a certain product has a certain makeup or if it’s a strain name and it creates a certain feeling when used, then that’s one thing. But then if you call it… I guess Gorilla Glue might not be the best example because it’s the trademark owners name, but if you call it something else and it doesn’t those qualities that seems to be a different problematic use for the consumer who has an expectation that it has certain qualities or characteristics when it doesn’t. It’s sort of a type of fraud, if you will, unfair competition, and a number of states have their own unfair competition laws. And trademark law does allow for that, where you’re unfairly claiming to have a product that bears certain characteristics when in fact it does not.

TG Branfalt: Okay. So why don’t you tell me about a couple of the cases that you’ve worked on, walk me through maybe something that you’ve defended or the process of trademarking something.

Jonathan Menkes: Certainly. So one of the projects or types of projects that I come across with some regularity is, someone comes up with a brand name. It doesn’t have to be for product, oftentimes it’s a clothing line or they have stickers or decals that promote the particular brand in question. And so one of my tasks is to see is someone else using a similar trademark for similar products or services, and doing what we call a clearance search.

And so you look at various databases. We have third-party databases that we commission to review searches and we see, okay, this other party is in this different space, we either do or do not think it’s going to cause an issue down the road, and then we counsel our clients on the results of that. Whether they should move forward, maybe they should add a few other terms to the trademark to distinguish it so they reduce the risk that they will see an issue going forward.

So that’s one type in the trademark space. Separately in the copyright space, which hopefully we’ll get to chat about that a bit as well as a few other forms of intellectual property that I think every brand owner should be aware of, is copyright law. So one project that I think is pretty interesting that I’ve been working on with some of my colleagues as of late is clearing copyrights. So copyrights, unlike trademarks, protect a little bit… it’s a different bundle of sticks, if you will. Copyrights prevent copying of imagery, of music, of sounds. It doesn’t really matter who’s producing it. It really matters just whether the two images or sounds or music in question are known as being substantially similar.

And the interesting part about copyright law is while it typically prohibits someone from copying it without authorization, there’s certain exceptions. You may have heard of the fair use defense. There can be certain instances under copyright law where using someone else’s… or clips, rather, of a video, or newspaper or other articles can be deemed a fair use so you don’t need that copyright holder’s permission to use it. And that’s one project I’ve been working on is counseling our clients on the situations in which that may or may not be permissible when a license is not feasible.

TG Branfalt: Is this something that is at the forefront… when you’re dealing with people in the cannabis industry, is it something that’s on the forefront of their mind when they enter the space or do they have sort of an aha moment when they’re talking to you?

Jonathan Menkes: It’s a great question. I would say by and large my clients really value trademarks and brand protection from the get-go. I find myself doing less educating as far as the importance of trademarks and brand protection in the cannabis space as compared with other spaces, interestingly enough. Unfortunately I think there are certain assumptions made about people in this space, but they’re some of the brightest, most innovative people I’ve come across, frankly. And that’s going back to your first question is why I love this space so much, is just how intelligent these people are, they’re business folks, they’re business savvy. These are not what I think some might unfortunately view as seedy people. These are, as I said, business owners that really want to do the right thing and protect the brands, follow the law and do what they can to make sure their company can thrive.

And to me, that’s been very exciting to work with them, to help them grow their brands in an intelligent way rather than just, let me file… whichever trademarks you send my way, I’ll file. I don’t think that’s typically the way these businesses flourish. I think there has to be a targeted approach to trademark protection, and that’s what I enjoy working with these folks in the cannabis space is helping decide what are my most important brands, and how do I go about protecting them.

TG Branfalt: So recently, the US Trademark and Patent Office released some guidance related to trademark copyright issues in the cannabis space. Could you tell me what your take on that guidance was and what it ultimately means for cannabis companies?

Jonathan Menkes: It’s a great question. Unfortunately, I think guidance, and I’m using air quotes here, is pretty unhelpful if you are in the cannabis space. For instance, if the product you’re working with has more than point three percent THC, it’s effectively out from a trademark registration standpoint.

The Trademark Office in the guidelines clarified what I think many practitioners already knew, which is that in order to obtain a trademark registration, the use has to be considered lawful. And lawful use requires that the use does not violate some other area of law and what many examiners have been doing, at least as of the last few years, is citing the Controlled Substances Act as a bar against registration of products that either touch cannabis directly, transport it, conceal it, process it, et cetera. I think there are ways that these products can be registered, but it’s really few and far between and it creates a real challenge for those in the space.

If the product contains less than point three percent THC, the guidance made clear that you could still have an issue, not with the Controlled Substances Act but with the Food, Drug and Cosmetics Act. And so it seems like with the farm bill passage in December 20th of 2018, we thought a lot of the CBD products would be easily registrable, and we just haven’t seen that because now the Trademark Office is now looking too at the FTC, the FDA, and finding that such products in particular in the supplement space are simply not registrable.

TG Branfalt: So what about states? What about in California? Can companies that are licensed, legally operating, do they have rights under any state laws?

Jonathan Menkes: It’s a terrific question. And that’s really a big part of the counseling that we do with our clients is looking at the states where they have legal use within those states and helping them secure state trademark registrations. So California I’m very happy to say has a very robust system in place from filing to registration where they do permit products to be registered. Cannabis products, CBD products. A few exceptions there, it can’t… the design element or the logo cannot be marketed where it would be attractive to children. You can’t have products whether CBD or cannabis that are mixed with alcohol or contain alcohol in it.

So there are a few exceptions there but generally speaking at least in California you can secure state trademark registrations for these products and there are a handful of other jurisdictions that also allow for it. For instance Oregon, Nevada, Arizona, you can get a registration. I believe that one if it’s only for medical use. But in any event, we do counsel clients in the various states that do allow for state registrations and helping them secure products there.

It’s very interesting that we have this dual system. We have the federal trademark system where you can probably get registrations for clothing, for decals, for things that don’t touch the product itself, and then at the state level you can get for products themselves.

TG Branfalt: So forgive me if this a naïve question, but let’s say a company in California has all the state trademarks and then a company in say Massachusetts which has a legal cannabis program violates that trademark. Is there any sort of action that the company in California could take against that Massachusetts company under the state guidelines or is that sort of an in state… would the infringement have to happen in state?

Jonathan Menkes: I love this question. I think it’s a great one. And it raises… this is not unique to cannabis. This happens with some regularity where you have two companies, company A in California and we’ll say company B in Massachusetts. They both started using at different times but they’re pretty localized, what happens?

So we’ll assume for purposes of this question there are no federal trademark registrations, which we should talk about at some point why someone should get or at least apply for a federal registration. But in your hypothetical, it’s first in right… first in time, excuse me, first in rights. So the first person to use the trademark has rights in that jurisdiction or geographical location where they used it. So in your situation if company A only use them within California and company B only use within Massachusetts, then really they would just be coexisting in their separate markets. There would be no claim from A to B or B to A because they’ve only used in those local markets.

Now, it gets tricky when let’s say company A has also licensed right to use their trademark in Colorado, and the Massachusetts company has also licensed the rights to its trademark in Colorado. So then the question might come down to, who was the first to use it within Colorado? Really, it’s a complicated issue, but it really comes down to who was first to us it in the relevant jurisdiction and perhaps a small zone outside of that specific locale would ultimately win. But it’s a great question, I’m really really happy you asked it.

TG Branfalt: So you mentioned that people should file, at least file for federal protection, but earlier you said said that you’re not really going to have a whole lot of luck at the federal level because cannabis is schedule one, that whole thing. So why make that application if it’s going to get denied?

Jonathan Menkes: Terrific. So, I think we need to make a distinction between what we’re filing for. And so it can be tricky if you file for a cannabis-related product, you’re almost certainly not going to get it federally registered, but if you are a brand owner presumably you have hats, clothing, other paraphernalia if you will to support your brand. And that, because it doesn’t contain cannabis products, can be registered at the federal level which is often ideal.

And so we counsel our clients in obtaining federal registrations for as I’ve mentioned clothing, decals, stickers, lighters, perhaps lanyards, as well as website services. If you’re providing a website that has information on perhaps the legalization of cannabis, I think I would rather have that than nothing when trying to assert it against a third party. And so while we’re on the subject of why bother with federal registration, it confers a few important things that people should consider.

So first is, if company A that we talked about in your previous hypothetical files a federal registration let’s say for clothing, let’s say they’ve only used in California and Nevada. Once they secure registration for that clothing, it’s as though they’ve used in every single state in the US including Massachusetts when they haven’t. And so that’s a pretty massive benefit because now they don’t have to prove use, it’s presumed that they have already used it there. So that’s one benefit.

The second benefit is now you have the Trademark Office acting as a mini police force for you, if you will, because they monitor…well, they review every application that comes across their desk and they will look to see if there’s some other registration or application that would bar a new application from registering. And so you have the added benefit of the Trademark Office basically adding as a first stop gate with people trying to register marks that are confusingly similar to what you own. And you have certain statutory presumptions with a federal registration that you don’t get without a registration, so for instance that the mark is valid, that you own it, that it’s distinctive. These are all important features that you would otherwise have to prove in court if you did not have a registration.

So I think there’s real value there that most of my clients I think appreciate. I’m very fortunate that they appreciate that, and it’s very fun to work with them to see what other products we can help them protect. And I don’t want to say we like to see how close we can get, that would not be the intent there, but just to see ways in which we can secure brand protection outside of the core products and services.

TG Branfalt: So what about… I know we briefly discussed strain names earlier, but how do ganjapreneurs protect that strain name intellectual property? I mean, I know that you’ve said that you can trademark clothing and other things that don’t touch the plant, but is there any way to protect intellectual property like strain names?

Jonathan Menkes: Terrific. So I’m really glad you asked this question because it does point to the other areas of intellectual property outside of trademarks that are important to consider. So for instance, patents. Patents traditionally cover useful articles, machines, inventions, improvements thereupon and these might… let’s say they’re atomizers or some other physical product that you have or processes, you can actually get a patent on strains. And I do have colleagues here at Knobbe that have worked with clients in filing for patents on strain names, and so that’s certainly something people should look at.

I think the big caveat there is if someone has been using or publicly distributing, offering for sale this particular strain name for more than a year, then by and large it would be unlikely to be patented because you basically donated it to the public. I would defer to one of my patent colleagues for further guidance on that, but roughly speaking if it’s been out in public for more than a year then you don’t have the option of getting a patent on that.

But perhaps there are other ways of protecting it. Trade secrets is another thing people should consider. Trade secrets are really anything that derives value from being a secret. So you think of Coca-Cola, their recipe’s probably the oldest trade secret that is out there. Kentucky Fried Chicken, their recipe for chicken is also a pretty famous one that we can say. So trade secrets for customer lists or maybe there’s a process by which you are growing the plant, or there’s some secretive process that you use that you don’t want to disclose to others that might be valuable to protect.

And so that knocks out… we’ve already discussed trademarks, there’s patents, there’s trade secrets and we touched on copyright, which really I think for purposes of the listeners here would be your website, your packaging material, the logo design. All of these things that have an image on them, you should be thinking copyright and the application process is relatively… it is inexpensive, frankly, and the process in the Copyright Office is unlike the Trademark Office because the Copyright Office is agnostic as far as use. So there is no CSA refusal for copyrights, and I think that’s probably one of the most undervalued forms of intellectual property is copyrights because the imagery is so important to branding, and I do think people should strongly consider getting a copyright.

And I will say one further point on that, this comes up with regularity in my practice, I wouldn’t use, or at least I’d be careful I should say, in using a third party to design your logos. Because more often than not, or at least frequently, even though they say they’re assigning it to you and you own the copyright, again I’m using air quotes here for own the copyright, but when we look at these agreements oftentimes you don’t. You look at it and we have to go back and get a copyright assignment from that third party. And the reason for that is under copyright law, whoever designs the website or designs the logo is the author or the owner of that, the exception being if it’s an employee within a company and it’s within the scope of their employment to prepare that website or the graphic designs. Then the company owns it.

But other than that, if it’s a third party traditionally that person owns it or that company outside of your company owns it, and so that is something I think the audience should just keep in mind when commissioning someone to prepare the logo design because maybe you don’t own the rights when you think you do.

TG Branfalt: So how do you prevent that from happening? I mean, do you design it yourself, do you have an attorney make sure that all the Is and Ts are dotted and crossed on the contract?

Jonathan Menkes: Yes, working with competent counsel’s always a good thing to consider. I think make no assumptions that just because someone says you own the copyright that you in fact do. Every case is different and the facts need to be looked at, and I would say even within a company it’s worthwhile for a practitioner to look at the situation involved there because maybe there’s some ambiguity about whether what they designed was really within the scope of their employment. So maybe that employee owns it as opposed to the company. So I think you’re absolutely right, working with competent counsel to think through these issues, to review agreements, or to prepare agreements for these brand owners in advance, at least to consider them thoroughly is really the point of this exercise.

TG Branfalt: So I want to go back for a second when you were talking about trade secrets, this isn’t something that I thought about at all with regard to ways to protect yourself. I’m also not a lawyer, but what’s that process like? How do you file to protect trade secrets?

Jonathan Menkes: It’s a great question. And so you technically don’t file anything for trade secrets. So it’s unlike any other area of intellectual property as far as patents where you have a filing, copyrights and trademarks where you have a filing with a government. Trade secrets you don’t. You just have to prove that you have something that is valuable because it is secret, like I said, customer list or perhaps a recipe. And you take reasonable steps to actually keep it secret. If you posted on Instagram, “This is exactly how I make X product,” you’ve lost it. You’ve donated it to the public. And so I think people need to be careful when they say they have a trade secret, and then if they’re sharing it with third parties non-disclosure agreements are absolutely critical to make sure you haven’t just lost or donated your trade secret to the public.

TG Branfalt: So something else about social media, when I helped a gentleman open up a few head shops a few years ago and he had named them Dab City, and he’d actually gotten a cease and desist from an attorney because somebody had opened an Instagram page a couple of years earlier using that Dab City moniker and they were claiming that this shop had infringed on his copyright because he’d had it longer, he’d had social media. I guess my question is, when you have a social media page, when you start a social media page, is that setting some sort of clock as it refers to trademark and copyright, those issues?

Jonathan Menkes: It’s a great question and I think it does raise a great point in how does social media impact people in the space. What are some issues that come up? I think this could work both ways. I know I have a number of clients who post images for their brand, they promote their brand on Instagram for instance and it’s just how you connect to the consumer. And so I think under traditional trademark law then that advertisement of products on social media could be deemed in certain circumstances as trademark use, and as we talked about the first user technically has the first right or has rights in the trademark there.

But the reverse is also true that you have to be careful when using social media or when people post things on social media. Who are you, are you Instagram or are you the brand owner? And I think each party along the chain of command there, so to speak, has to be cognizant of what’s being posted.

For brand owners, I know this happens with way too much regularity where they file for a product and the trademark examiner will take a look at their website. We never submitted any evidence of their website, we just submitted product packaging, for instance, or something else. And the examiner pokes around and sees, “Oh, you’ve identified something as an herbal product which sounds innocuous enough, but I see that you’re actually selling cannabis because on this Instagram page there are cannabis leaves everywhere, people smoking, it’s very obvious that this is for cannabis products.” And so I think that’s where people also have to be careful with… I understand that you need to promote your brand, but just be warned, what’s out there in the public is out there for everyone including trademark examiners who will and have used whatever you’ve posted against you.

TG Branfalt: So this has been really fascinating, getting the… it sounds really complicated and you learned pretty quickly and on the fly what has to happen, do you think, federal statewide to make this issue less complicated? Is it something as simple as federal action, or can something be done maybe when states pass laws that include language that speaks to this issue, how can we sort of less muddy these waters?

Jonathan Menkes: It’s a great question, it’s an important question. I think if cannabis were federally decriminalized or legalized then I think the trademark practice would be much, much easier than the currently is. The Trademark Office, interestingly enough, once upon a time did allow products that had cannabis in them, I think around 2013 or 14 or so. You can find registrations where it lists something that is pretty obviously cannabis-related, and then there was a change in course. And so I think the easiest thing to now happen would be federal legalization or decriminalization and the Trademark Office going along with that saying, “Okay, it’s no longer not lawful use in commerce so we will no longer be refusing registration on that basis.”

That would certainly make my job easier but I don’t know that it’s going to happen any time in the very near future. But I have heard some inklings that this may be two years or less or so, but who knows who’s right, who’s wrong, only time will tell.

TG Branfalt: So finally, what advice do you have for entrepreneurs either looking to enter the space or who have already entered the space with regard to protecting their intellectual property?

Jonathan Menkes: It’s a great question. I think what I would say is find the sweet spot, and what I mean by that is you don’t want to go overboard with trademark filings or other types of filings, but you don’t want to not protect your core brands. And so I think the key there is to find a great practitioner that you trust, that is reputable, that knows the space and who has worked with clients and will continue to work with clients in navigating these very, very muddy waters. The point I think here is that clients or prospective clients should just really consider what is my core brand, what are my sub-brands, what is my budget and can I get all these trademarks now or do I have to wait a few years until the business grows and then secure these secondary trademarks?

And I think it’s often overlooked that you do have trademark rights just by using. True, it’s limited to only the geographic areas where you have used, but that’s still better than nothing. And so maybe you don’t file for 10 trademarks this year, you file for two. Next year, you file for three. And then as your business grows, you really protect your core brand. So really driving home the point of find the sweet spot of the appropriate amount of protection to really cover your bases without going overboard and blowing the entire budget just on lawyers like myself.

TG Branfalt: Johnathan, I want to thank you so much for coming on the show, taking your time. I know that you are expecting a child any day now, congratulations. So to have you take time out of this Monday to be on the show is pretty great. Can you tell the listeners where they can find out more about you and your practice at Knobbe Marten?

Jonathan Menkes: Terrific. Tim, I want to thank you for having me on this show. It’s been very fun, I love talking about the issues that arise here and thank you for this wonderful opportunity.

Listeners can find me on our website, knobbe.com, that’s K-N-O-B-B-E dot com. Again, that’s Johnathan Menkes. Or they can shoot me an email, johnathan.menkes@knobbe.com. Last name is M-E-N-K-E-S. Hopefully a Google search would reveal the name as well because we have written a bit in the space and so hopefully my name would come up, but I do encourage anyone to reach out if they have questions. I do free consultations over the phone or in person just to see how we can help and hopefully we have the opportunity to work with each other.

So again, Tim, thank you so much and I really appreciate the opportunity.

TG Branfalt: Thank you. Johnathan Menkes, California based trademark attorney with Knobbe Martens. You can find more episodes of the Ganjapreneur.com podcast in the podcast section of ganjapreneur.com and in the Apple iTunes store. On the ganjapreneur.com website you will find the latest cannabis news and cannabis jobs updated daily, along with transcripts of this podcast. You can also download the ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt.

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USDA: Hemp Qualifies for Federal Crop Insurance

The U.S. Department of Agriculture has announced that hemp cultivated for fiber, flower, or seeds is now eligible for federal crop insurance. Hemp farmers eligible under the program can insure plants with revenues up to $8.5 million. 

“Numerous producers are anxious for a way to protect their hemp crops from natural disasters. The [Whole Farm Revenue Protection] policy will provide a safety net for them. We expect to be able to offer additional hemp coverage options as USDA continues implementing the 2018 Farm Bill.” — USDA Risk Management Agency Administrator Martin Barbre, in a press release

To be eligible, farmers must be compliant under their state and federal regulations and “hemp having THC above the compliance level will not constitute an insurable cause of loss,” the release states.

It’s the latest move by the USDA following the 2018 legalization of hemp federally via the Farm Bill. In May, the agency issued its first organic certification for a hemp flower product; although the agency had certified other hemp products in the past, such as Food and Drug Administration-approved hemp food products.

The following month, the USDA released guidance for importing hemp seeds, which previously required Drug Enforcement Administration approval.

Following the passage of the Farm Bill, states could enact their own hemp cultivation program but those must first be approved by the USDA to take effect; the agency has, so far, not approved any of the state-approved plans but the agency notes in the release that those regulations are expected later this year.

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California Cannabis Tax Revenues Still Below Expectations

California tax revenues derived from the cannabis industry increased slightly more than $10 million in this year’s second quarter — from $63.1 million during the first three months of the year to $74.2 million — but they are still below government expectations, according to an NPR report.

In January, Gov. Gavin Newsom (D) had forecast cannabis tax revenues would be worth $355 million this year and $514 million in 2020 but in May he adjusted those estimates to $288 million this year and $359 million next year.

Cannabis profits in the state actually decreased when legalization took effect in 2018 — from about $3 billion to $2.5 billion. A report from Arcview Research and BDS Analytics released earlier this month suggests the state is poised to reach $3 billion in sales again this year. 

The Institute on Taxation and Economic Policy notes that after adjusting for population, California “raised the second-least amount of revenue from cannabis taxes during the second quarter among states with legal sales, ahead of only Massachusetts.”

Tom Adams of BDS Analytics told NPR that the sales slowdown could be due to the state’s high taxes and the fact that two-thirds of California municipalities have banned industry operations. California levies a 15 percent excise tax on sales and a cultivation tax of $9.25 per ounce, along with a 9 percent to 11 percent retail sales tax.

In May, the Appropriations Committee rejected a bill to lower the state’s cannabis taxes. That measure would have reduced the excise tax from 15 percent to 11 percent and suspended the cultivation tax for three years. 

The committee did advance a bill that would require municipalities to allow cannabusinesses if the majority of the citizens in the city or town approved Proposition 64. That bill would require one retail dispensary for every six liquor licenses or every 15,000 residents. As of May, there were 631 licensed cannabis retailers in the state, which is just 10 percent of initial government estimates.

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Kentucky County Halts Cannabis Possession Prosecutions

Jefferson County, Kentucky officials are no longer prosecuting low-level cannabis possession crimes if it’s the only or primary charge, the Courier-Journal reports.

County Attorney Mike O’Connell said the decision comes after a Courier-Journal report found that African-Americans accounted for two-thirds of cannabis possession cases in 2017 and Black drivers in Louisville were charged with possession at six times the rate of white drivers — national studies have found that both Black and white people consume cannabis at the same rates. 

“For me to truly be a minister of justice, I cannot sit idly by when communities of color are treated differently.” — O’Connell, to the Courier-Journal 

The policy applies to cases of one ounce or less and for paraphernalia used only for cannabis consumption. Louisville Metro Police Chief Steve Conrad told the Courier-Journal that he will tell his officers not to “routinely write citations for this specific offense.” The Louisville Metro Council passed an ordinance in June making possession of a half-ounce or less of cannabis the lowest priority for police officers.

O’Connell’s office will still prosecute cannabis cases linked to trafficking, cultivation, driving under the influence, public consumption, and possession cases involving individuals under 21-years-old. Cannabis possession in Kentucky is punishable by up to 45 days in jail and a $250 fine; although a 2012 law allows those charges to be expunged after 60 days.  

Mayor Greg Fischer’s spokeswoman, Jean Porter, told the Courier-Journal that the mayor respects O’Connell’s decision and Conrad’s efforts to reform police practices. 

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California Assembly Approves Medical Cannabis on K-12 Campuses

California’s Assembly has approved a measure to allow school boards to decide whether or not to allow medical cannabis use on K-12 campuses, the Associated Press reports. The measure only permits non-smokable forms of cannabis.

Sen. Jerry Hill (D), the lead sponsor of the legislation, said the bill “makes it easier” for students “to get the medicine they need without disrupting their school.” Under the current state’s laws, students cannot bring medical cannabis within 1,000 feet of campus and parents must come to the school, pick up their child to administer medical cannabis and bring them back. Hill called the process “disruptive” adding that “every child is entitled to an uninterrupted education.”

“Existing law allows schools to legally administer any pharmaceutical drug, including opioids, that a child has been prescribed. But there are medical conditions pharmaceuticals can’t fix, and they often have debilitating side effects. In some of these cases, medical cannabis is highly effective.” – Hill, in a statement, via the Desert Sun

A similar measure passed both the Assembly and Senate last year but was vetoed by then-Governor Jerry Brown. The new version of the bill still needs approval from the Senate before moving to Gov. Gavin Newsom for his signature.

Assemblymember Al Muratsuchi voted against the proposal, calling it “crossing what should be a bright line” in keeping cannabis out of schools, according to an ABC 7 report.

Under the bill, parents would have to administer medical cannabis to their children but it does allow school boards leeway in allowing trained staff, such as school nurses, to dose medical cannabis products to students.

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Washington Officials Considering ‘Cannabis 2.0’ Reforms

Officials in Washington are considering overhauling the state’s adult-use cannabis laws, including adding a social equity program, the Associated Press reports. The Liquor and Cannabis Board are calling the proposals “Cannabis 2.0” and trying to amend the laws to be in line with what the market will look like in the next five years.

The agency is considering changes like having the Department of Ecology oversee cannabis laboratory testing and the Department of Financial Institutions look into the ownership structures of cannabis businesses. The board is also considering abandoning its seed-to-sale tracking system – which has been beset by issues throughout the five years cannabis has been legalized in the state.

While Washington is not currently issuing new cannabis licenses, 11 retailers have surrendered their licenses and officials could make those available to social equity applicants, including minorities, women, and military veterans, according to the report. Legislation in the state would create a technical assistance program for social equity applicants which would give them access to grants totaling at least $100,000 per year. The agency could open up another licensing process for social equity applicants if cities and counties agree to add more cannabusinesses.

The Liquor and Cannabis Board is also reportedly considering allowing cannabis exports if the federal government allows it – similar to the law recently approved by neighboring Oregon.

Lawmakers, meanwhile, are considering a plan to allow the state’s tier one, or smallest, cultivators to sell directly to the state’s medical cannabis patients on-site, which would help patients receive medical-grade products and the cultivators. Another proposal would allow those cultivators to expand their operations from 2,000 square feet to 5,000 square feet and, possibly, 8,000 square feet.

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Rob Gronkowski Credits CBD with Being ‘Pain-Free’ After NFL

Former New England Patriots tight end Rob Gronkowski is taking an ownership stake in Abacus Health Products, a Rhode Island-based company that produces CBDMedic and is publicly traded on the Canadian Securities Exchange, WBUR reports. At a news conference yesterday, Gronkowski – a three-time Super Bowl champion and five-time Pro Bowl selection – credited CBD with making him “pain-free” for the first time in a decade.

“I’m here today to appeal to the sports governing bodies of the world to update their position on CBD, whether that’s the NBA, MLB or NFL. It’s just time.” – Gronkowski, during a news conference, via WBUR

Gronkowski, who is just 30-years-old, retired from the National Football League after last season following a career plagued by injuries and nine surgeries.

“[The injuries] took an absolute beating on my mind and my soul. I was hurt both mentally and physically, day in and day out,” Gronkowski said during the conference. “I decided to walk away from the game for one reason: I had to recover.”

During his remarks, Gronkowski indicated if his health continues to improve he would consider returning to the league; however, as Dan Roche of WBZ-TV points out, CBD is still banned by the NFL and Gronkowski would be facing a suspension if he continued using CBD products and returned to football. The league did announce in May that it, along with the NFL Player’s Association, is including medical cannabis and cannabinoids to its pain management research.

Abacus makes topical CBD products and plans to partner with Gronkowski on a line of edibles next year.

Several other former NFL players have either launched, or expressed interest in launching, cannabis-related businesses post-retirement, including Ricky Williams, Calvin Johnson and Rob Sims, and Troy Smith and Eric Metcalf.

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DEA Expanding Cannabis Research Programs

The Drug Enforcement Administration announced yesterday that is “moving forward to facilitate and expand scientific and medical research” into medical cannabis research. The agency indicated it is already providing notice to entities and individuals with pending research applications.

The DEA notes that over the last two years, the number of individuals registered with the agency to conduct cannabis research increased from 384 to 542 and that officials have more than doubled the production quota for cannabis during that span “based on increased usage projections for federally approved research projects.”

Acting DEA Administrator Uttam Dhillon said in a press release that the agency supports “additional research into marijuana and its components [and] believe registering more growers will result in researchers having access to a wider variety for study.”

Last week, Dr. Sue Sisley – a cannabis researcher from Arizona – announced she was suing the agency over its hurdles to cannabis research and said she was only able to procure one, low-quality, variety of cannabis from the federal government.

Attorney General William Barr said he was “pleased” with the agency’s announcement.

The DEA also announced that hemp cultivators no longer need to register with the agency, following last year’s removal of hemp from the federal Controlled Substances Act in the Farm Bill.

The agency also said they will propose new regulations for cannabis research and plan to put those regulatory proposals up for public comments.

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Cannabis Use Will Improve Your Sex Life, Study Finds

Cannabis use is likely to improve your sex life, according to the new data report Let’s Toke About Sex compiled by cannabis marketplace Eaze and Lioness, a “smart vibrator” manufacturer whose flagship product boasts climax-tracking sensors.

According to the report, people in all age demographics — whether they were a regular consumer or not, and single or married — resoundingly agreed that cannabis improves sexual experiences, both solo and with a partner.

“Simply put, cannabis makes sex lives better. As an increasing number of Americans are turning to cannabis to enhance their lives, it only makes sense that it would extend into the bedroom.” — Peter Gigante, Eaze’s head of research, in a press release

According to the report, 85 percent of respondents reported being more satisfied with their orgasms during solo sessions and 79 percent during partner sessions. Additionally, 84 percent reported that cannabis improved their experience with sex toys during solo sessions, while 79 percent agreed likewise, but for partner sessions. Notably, THC-rich edibles and vaporizers were found to be the most effective at increasing one’s number of orgasms, followed by CBD edibles and vapes.

Cannabis was also found to have a resounding effect on the length of sexual activity during both solo (64 percent) and partner (73 percent) sessions.

Lastly, in a direct comparison to alcohol, respondents overwhelmingly described cannabis as more of a factor in intense orgasms (66 percent vs just 2 percent), longer sessions (57 percent vs 6 percent), feeling a connection with their partner (56 percent vs 3 percent), more satisfying foreplay (55 percent vs 3 percent), and increased orgasms (52 percent vs 2 percent).

“The fact of the matter is, cannabis is helping people have healthier and happier sex lives,” Liz Klinger, co-founder and CEO at Lioness, said in a statement. “We hope that this report will help break down outdated taboos around pleasure and are thrilled to partner with Eaze to uncover new insights about the positive effects cannabis can have on sexual exploration.”

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UK Health Institute Rejects CBD As Epilepsy Treatment

The National Institute for Health Care and Excellence – a United Kingdom policy group – has decided not to recommend CBD with clobazam for treating treatment-resistant epilepsy conditions Dravet and Lennox-Gastaut syndromes, according to a Medscape report. CBD with clobazam is used in the GW Pharma drug Epidiolex.

Meindert Boysen, director of the NICE Centre for Health Technology Evaluation, said that the committee accepts “that the evidence shows that cannabidiol with clobazam reduces seizure frequency, [but] its long-term efficacy is unknown.”

“…The committee was not convinced about the way the company had modeled the effect on people living longer or having a better quality of life. Based on the evidence presented to it, the committee could not recommend cannabidiol with clobazam as an effective use of [National Health Services] resources.” – Boysen, to Medscape

Boysen added that NICE is “committed to working with the company to resolve the economic modeling issues identified by the committee, and to help them understand what they may need to do to mitigate the cost of cannabidiol to the NHS.”

Professor David Nutt, head of the Centre for Neuropsychopharmacology at Imperial College London, told Medscape that CBD “by itself isn’t particularly efficacious” for treating epilepsy syndromes, and that “most of the successful outcomes” have come from the use of cannabis oil that also contains THC and THCV.

“Developing and testing such combinations would be extremely challenging and expensive and, given none may ever be reimbursed by NICE, ultimately futile,” Nutt said in the report. “This is why no mainstream pharmaceutical companies are in the field.”

Earlier this month, NHS England reported that the lack of quality data was a “major hurdle” to NHS patients being able to obtain cannabis-based medicines.

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Canadian Company Introduces DIY Gummy Kit

Canadian company Paracanna has released a do-it-yourself cannabis gummy kit, which comes about four months before the government is set to allow edible sales, according to a Bloomberg News report. The Zen Zingers kits allow consumers to add drops of oil to create gummies in a variety of flavors.

Paracanna chief executive Andrea Butterworth said the products fall in line with Health Canada regulations for candies, despite the products not having any cannabis in them.

“No animals, no characters, no creating juicy explosions and things that are typically seen in kids’ candy. We really tried to stay away from that.” – Butterworth, to Bloomberg News

The kits allow consumers to make the gummies as weak or strong as they like, although the company doesn’t recommend doses above 10 milligrams.

“We don’t want anyone to go out and take a really high dose and hurt themselves, or put themselves in harm’s way,” Butterworth said in the report. “But there are certain people who will inevitably use the kits to access what’s required for their conditions.”

She said that, even after edibles are introduced, there would still be a place in the market for the product because it is more cost-effective than pre-packaged products. Under Health Canada regulations, THC limits for edibles are capped at 10 milligrams per package.

A Deloitte study estimates that the Canadian edibles market will be worth $1.6 billion annually.

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Two Florida Adult-Use Initiatives Planned for 2020

Cannabis advocates have filed a new petition to put adult-use cannabis on the 2020 Florida ballot with the Florida Secretary of State. This latest legalization effort in Florida is spearheaded by political action committee Make it Legal Florida, chaired by Med Men lobbyist and former Republican advisor Nick Hansen.

Known as “Adult Use of Marijuana,” the prospective constitutional amendment will allow for adults over 21 to purchase and/or possess up to 2.5 ounces of cannabis but does not include homegrows. The initiative also includes language regulating cannabis advertising, packaging, and distribution, and would allow existing medical cannabis treatment centers to sell cannabis to adults over twenty-one.

“Public opinion is on our side, and the time to act is now. Florida voters on every side of the aisle overwhelmingly support this initiative and at Make it Legal Florida, we are committed to ensuring Floridians have a chance to have their voices heard.” — Hansen, via Marijuana Moment

Earlier this year, Regulate Florida — the group behind Florida’s successful medical cannabis Constitutional Amendment passed in 2016 — filed their own petition to put a people’s initiative on the 2020 ballot. The group recently collected the 76,632 signatures needed to trigger a Supreme Court review and economic impact study of the initiative.

Unlike the Make it Legal Florida effort, however, Regulate Florida’s initiative would allow for personal cultivation but does not include medical marijuana treatment centers in the initiative language. 

Over seventy percent of Floridians turned out to support medical cannabis in 2016 and a recent Quinnipiac University Poll revealed Florida voters were in favor of legalizing adult-use cannabis, sixty-five percent to thirty percent. Despite the high polling numbers, it’s unclear how having both initiatives on the ballot might affect the vote outcomes.

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Thailand Turning Illegal Cannabis into Medicine

Officials in Thailand are turning seized cannabis into medical cannabis products for the domestic market, according to a report from the Grizzle. Last week, law enforcement authorities seized more than 2,204 pounds of illegally grown cannabis and transferred it to the Department of Thai Traditional, Alternative Medicine and the Department of Medical Sciences to process into about 600,000 bottles of cannabis oil. Another 11 pounds will be used by the agencies for experimentation.

This month, Thailand has produced 10,000 bottles of cannabis oil through its state-run medical cannabis program and began distributing them to patients last week, according to the report. The government plans to produce 1 million more bottles at a facility near Bangkok early next year; however, demand is outpacing supply and the cannabis grown in the recent bust is high enough quality for processing.

Niyom Termsrisuk, secretary-general at the Office of the Narcotics Control Board, said that the transfer violates no international narcotics laws.

The International Narcotics Control Board, though, has said they are “deeply concerned” with the liberalization of drug laws in Thailand. INCB president Sumyai Viroj told the Bangkok Post that Thai officials should examine its agreements under the 1961 Single Convention on Narcotic Drugs and comply with both Convention on Psychotropic Substances of 1971 and Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988.

Qualifying conditions for medical cannabis in Thailand include epilepsy, chronic pain, Parkinson’s, Alzheimer’s and the side effects of chemotherapy, although doctors can approve patients for other conditions as they deem fit.

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Inequality Abounds In 2019 NYC Cannabis Arrests

A new analysis by the Queen’s Daily Eagle shows that, despite the loosening of cannabis possession laws in New York State and an overall decrease in cannabis arrests by the New York Police Department, nearly all individuals arrested for low-level cannabis violations in New York City during the first six months of 2019 were Black or Latinx.

According to the report, 94% of the 1,436 people arrested for 5th-degree cannabis possession or 4th-degree sale were Black or Hispanic. The data did not include arrest rates for whites or Asians, and the NYPD did not record race or ethnicity for all arrests.  

Robert Gangi, director of the Police Reform Organizing Project, told the Eagle that this “blatant” disparity in arrest rates can be attributed to concentrated policing efforts in communities of color.

“The reason is fundamentally where the police are deployed and what directions they’re given. They are deployed primarily in low-income communities of color … and they’re told to practice ‘broken windows’ policing.” — Gangi, via the Queen’s Daily Eagle

These new statistics mirror an analysis published earlier this year that found that African Americans in New York state were 8.1 times more likely to be arrested for misdemeanor cannabis possession than their white peers — an increase from 7.1% in 2010. Similarly, during that same time frame, the Latinx community saw an increase in the same metric from 3.4% to 5%.

New York state Democratic leaders failed to agree on an adult-use cannabis bill this year — although the general consensus seems to be in favor of legalization — despite having control of both legislative bodies and the governorship.

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Arkansas Medical Cannabis Sales Top $6M In 3 Months

Medical cannabis sales in Arkansas have reached $6.04 million just three months after sales commenced in the state, according to Arkansas Alcoholic Beverage Control Division figures outlined by the Arkansas Democrat-Gazette reports. In all, more than 800 pounds of medical cannabis has been dispensed to patients in the state.

According to the Department of Finance and Administration, the state has collected $91,213 from the 4 percent privilege tax and $77,358 from its regular sales tax on cannabis purchases.

Alcoholic Beverage Control Director Doralee Chandler said the agency’s focus is “providing the remaining 24 dispensaries the support and encouragement to begin serving patients as soon as possible.”

“Every patient deserves close, convenient access to a dispensary as this was the reason four locations were licensed in each of the state’s eight zones. ABC is prepared to take action in January 2020 should any dispensaries not be operational or in the final stages of preparation.” — Chandler, to the Democrat-Gazette

The Department of Health has approved 19,992 medical cannabis patient cards and the sales figures through three months outpaced Ohio – which has triple the population of Arkansas and sold less than $2.5 million worth of medical cannabis over its first three months.

David Couch, the Little Rock attorney who drafted the voter-approved medical cannabis law, noted that the price of an ounce of medical cannabis remains at about $425 in Arkansas dispensaries. Couch noted that many of the dispensaries that haven’t opened yet are run by out-of-state firms.

Currently, there are just eight operational dispensaries in the state.

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California Committee Approves Cannabis-on-‘Party Bus’ Bill

The California Assembly Appropriations Committee has approved legislation to allow cannabis consumption on ‘party buses’ – namely buses, limousines, or modified limousines – under certain conditions, CBS Local (Sacramento) reports. Under the proposal, only passengers 21-and-older would be allowed to use cannabis in the vehicle.

The conditions under the measure include a physical barrier between the driver and passenger compartment and that both are ventilated separately. Additionally, the passenger compartment must have an employee present, cannabis consumption must not be visible to the public, the vehicle design should not pose a public safety risk and must comply with all safety laws and regulations, the driver must tell passengers that cannabis consumption will take place, the driver or employee must tell passengers where all the emergency exits, and they must check the ID of all passengers.

Vehicles must also have a warning notice stating that cannabis will be consumed in the vehicle and that cannabis is a risk to pregnant or breastfeeding women and impairs driving ability.

The California Highway Patrol opposed the measure, saying that it “does not have the means to test the barriers” and that the “ingestion of secondhand smoke by the driver could have disastrous results.”

According to the bill analysis, the California Association of Highway Patrol and California Police Chiefs Association changed their stance on the bill from “opposed” to “neutral.”

Under previous state legislation, cannabis consumption was made legal on party buses licensed by the California Public Utilities Commission and this bill would close that loophole but allow companies to get licenses to allow cannabis use in their vehicles.

The measure passed the committee 10-6 and moves next to California‘s full Assembly for a vote.

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Cannabis Worker

Canada’s Cannabis Industry Jobs Nearly Quadrupled from 2018

Canada’s cannabis industry has seen employment numbers nearly quadruple over the last year – from 2,630 jobs to 9,200 jobs, according to Statistics Canada figures outlined by Bloomberg News. Of those jobs, about 60 percent are in cultivation, harvesting, processing, manufacturing, and administration, while 20 percent work in packaging, marketing, and sales.

In 2017, Canada’s cannabis space counted just 1,438 jobs.

In all, there are 175 cannabis firms operating in the Great White North, up from 83 last year, and just 37 in 2017. Combined, Canada‘s cannabis companies have total assets of C$4.2 billion, as of April – up from C$2.5 billion in fiscal 2018 and C$704 million in fiscal 2017. Wages, salaries, and employee benefits account for about 29 percent of cannabusiness expenses in the nation while raw materials and other inputs account for about 25 percent.

The nation’s licensed producers sold about 46 metric tons (101,413 pounds) of cannabis over the last fiscal year and had 39 metric tons (85,980 pounds) of inventory on hand.

Cannabis companies reported to Statistics Canada that, while their revenues rose 92 percent in fiscal year 2018 and another 52 percent by April, all companies reported overall losses.

In June, Statistics Canada reported that the nation had earned $186 million in excise and general taxes on cannabis-related goods and services during the first five-and-a-half months of legal sales.

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Ohio County Declines to Prosecute Illegal Cannabis Cultivation

A cannabis eradication law enforcement action in Ashtabula County, Ohio uncovered as many as 85 plants but law enforcement officials levied no charges due to the state’s recently passed hemp law, News 5 Cleveland reports.

In a letter to state prosecutors, the Ohio Bureau of Criminal Investigation – an agency involved in the sweep – noted that THC-rich cannabis “cannot be identified solely by historical techniques (microscopic examination and Duquenois-Levine color testing)” and “Quantitative analysis is necessary to ensure the THC content exceeds the statutory 0.3 [percent] level.” In the letter, BCI recommends suspending cannabis enforcement and not try “any cannabis-related items […] prior to the crime laboratory … being capable to perform the necessary quantitative analysis.”

Earlier this month, Attorney General Dave Yost announced the creation of a program to help law enforcement agencies differentiate between hemp and illegal cannabis. The program will provide agencies with $50,000 to have “large quantities” of cannabis tested by laboratories with the technology to test THC content.

Crime Enforcement Agency of Ashtabula County Commander Detective Greg Leonhard told NBC 5 there wasn’t enough cannabis seized in this week’s Drug Enforcement Administration-funded flyover enforcement action to charge anyone with a third-degree felony and the hemp law change makes further investigation into the grows impractical. He added that the with the attorney general’s program, people could be charged during next year’s enforcement actions.

No hemp cultivation licenses have been issued in Ohio, so cultivation of the plant is still, technically, illegal in the state.

Some law enforcement officials in other states without legalized cannabis – including Nebraska, Georgia and Texas – have said they would not make arrests or commit to prosecutions for low-level cannabis charges citing their state’s passage of hemp legalization legislation.

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Buying Weed In Canada as a Tourist: What to Know

Last week I made my way to Montreal, Quebec, Canada — just a two-hour drive from my home in upstate, New York — and, after having covered the nation’s federal cannabis legalization, I was excited to experience it for myself. I came back with the following takeaways on weed in Canada.

Cannabis use is not ubiquitous

Of course, there were people smoking in public — and in the massive line to get into the government-run dispensary in downtown Montreal — but I saw more people drinking alcohol on the street than consuming cannabis. Even once the sun went down on the shore of the Mighty St. Lawrence River, the parks were mostly clear of cannabis odor.

Of course, this was not the case outside of the venue I was a patron of for a punk rock show — there was no shortage of concert-goers smoking joints on that street but the club’s security didn’t mind and those consuming largely did so nearer the street so as not to offend the people walking past the club.

There is also zero advertising, so you would barely notice that cannabis is legal if not for the “No Cannabis Smoking” signs pocked throughout the city. Even the dispensary had no outward signs it was a retail cannabis seller (except for the queue).

No public cannabis consumption in Canada
Such no-smoking signs are visible throughout Montreal.

There is a need for social-use establishments

As a tourist, it didn’t feel right lighting up in public — I mean, I did and I often do wherever I go regardless of local laws. Throughout my three-day, 11-joint stay, I mostly smoked in alleys, sparsely populated public parks, and outside of the aforementioned music venue; just once smoking “legally” on the balcony of a friend’s apartment. Each time, though, it felt uncouth. I knew I wouldn’t get in trouble or anything but I felt like I was doing exactly what prohibitionists warn the public-at-large about — contributing to public nuisance despite going out of my way to be as incognito as possible. 

It would have been ideal to have an indoor place to smoke a joint, have a soft drink, and relax, instead of ripping down a half-gram joint as quickly as possible in an alley or under a tree. The hotel I stayed at imposed a CAD$1,000 fine for smoking in the room, including cannabis — which falls under local no-smoking regulations just like tobacco. If the government and residents don’t want tourists and others to consume in public they need to establish and support social-use establishments.

The market needs edibles

In the absence of social-use establishments, edibles cannot come soon enough. I wouldn’t have even bought flower had edibles been an option — I like them better than smoking and could have consumed them anywhere I had visited. However, with smokeable (and vapeable) products as the only legally-available option, of course people, especially tourists, are going to be consuming in public — there’s no other viable way to enjoy weed in Canada.

It’s not as expensive as you might think

Seriously, I bought nine joints legally — totaling 6 grams — and it cost me about what flower costs me in the upstate New York illegal market (less than US$60). Now, I realize for Canadians there is a bit of sticker shock, but for me (and the guy from Philly who was in the line next to me) the price was not at all a deterrent for purchasing legal products. I was given a gram by my friend (who still purchases outside of the legal shops), which prevented me from having to go back into the dispensary, but I would not have been dissuaded from making another run because of the price. More likely, it would have been the line.

Cannabis packaging
The exterior packaging of my legal cannabis purchase in Canada.

The packaging is too much

I get the urge to use child-resistant packaging but with two of the pre-rolls I bought they were each in a cardboard box that held a sealed, plastic container for the joint itself — that’s a lot of waste for what, illegally, comes in one plastic bag (along with the rest of the purchase). The other joints came in hard plastic tubes with multiples per tube but still, far more waste than a sandwich bag.

And, sure, I would have received one plastic package had I just bought it by the gram and not pre-rolls, but it would have been much harder to consume as there are not a lot of places to openly roll a joint or use a pipe, and I wasn’t going to risk crossing the U.S. border with even a roach let alone leftovers or paraphernalia.  

weed in canada
A look at the excessive packaging from the inside of a box of pre-rolls.

More shops need to open

The line at the dispensary I went to wrapped nearly around the block; however, it moved fairly quickly and I spent about 30 minutes from the time I lined up until the time I walked out. But the long line makes the buying experience a bit stressful, as you don’t want to be the one that holds it up so you sort of make your choices under self-imposed duress. Don’t take that to mean that the staff rushes you along — quite the opposite, actually; they were very friendly and patient but when you know you have 200 people behind you, it makes you want to hurry.

Of course, it’s been less than a year since legal sales commenced and had I wanted to drive I could have found a dispensary that might have had shorter lines, but it was apparent that there is a need for another dispensary or two at least in downtown Montreal.

The Canadian model — at least the one I experienced in Montreal — is what I expect the industry to look like in states that legalize via the legislature: tested, packaged, products with no advertising and no places for non-residents to safely consume. For me, it was the first time I had bought cannabis at a dispensary (although I had made legal purchases at Michigan’s Cannabis Cup) and the experience was, mostly, everything I expected; although, I really did expect to see more people smoking on the streets and advertisements for delivery or a dispensary location services at least.

The next trip I make will likely be after edibles are legalized (the word is they’ll be available by Jan. 1, 2020) and I plan to look around for more cannabis-friendly accommodations and, while weed in Canada is not perfect — I do think they would be served by opening up dispensing to private companies — I didn’t have that fear of being fined or even arrested for the joints in my pocket. And as I walked out with my brown paper bag I uttered, “There is freedom in Canada.”

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Ooze Slugger Dabbin Dugout Review

The Ooze Slugger Dabbin Dugout is a silicone travel kit designed for on-the-move dabbing, and for bringing your dabbing gear on the road.

Complete with silicone padding and smart, secure storage for your ceramic or glass nails, bowls, packaged concentrates, and more, the Ooze Slugger Dabbin Dugout is a sleek, compact design that can fit nicely in your backpack, purse, or — if you’re traveling within a fully legalized state — even your airplane carry-on and/or checked luggage.

One end of the Dabbin Dugout travel case contains two long compartments. These compartments come pre-filled — one compartment contains an Ooze nectar collector, which is a long, straight silicone tube designed for the easy vaporization of cannabis waxes or oils; the other compartment opens into two smaller pockets that each come pre-filled with a nail, one glass and the other titanium.

On the opposite end of the Ooze Slugger Dabbin Dugout, a silicone flap can be peeled back to reveal a larger compartment designed for easy, on-the-go dabbing. The base of this pocket is lined with a glass bowl, which works as a convenient dabbing surface, as the sticky stuff you put there won’t get stuck as easily and the compartment can be swiftly wiped clean when you’re finished. Combined with the nectar collector, this is a much more travel-friendly option than traditional dab rigs, as you won’t have to risk losing or breaking your favorite piece when you’re out and about.

Lastly, one of the travel kit’s long sides contains an additional chamber that has been broken into four individual storage compartments. These pockets are handy for packing away various cannabis concentrate samples — we would suggest keeping them wrapped up in wax paper, however, to avoid making a mess of things!

All in all, the Ooze Slugger Dabbin Dugout does its job without fuss or complications. It’s a great travel solution for bringing your at-home dabbing experience on the road, and is perfect for consumers who want to take that extra step to guarantee their travel experience won’t result in a cracked nail or misplaced gram.

With a $50.00 price tag, we recommend this product for individuals who really enjoy collecting, protecting, and nerding out about their fancy dabbing gear. Remember: while this kit comes with its own collection of nails and vaping tools, you can always insert your own favorite products in their place!

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Cannabis Flavonoid Shows ‘Significant’ Potential as Pancreatic Cancer Therapy

Researchers at Harvard University’s Dana-Farber Cancer Institute have found a cannabis flavonoid to have “significant therapy potential” for treating pancreatic cancer, according to a CBS Local (New York) report. In studies, the flavonoid derivative – FBL-03G – killed tumor cells in 70 percent of mice with pancreatic cancer.

Flavonoids, which are non-psychoactive, are naturally occurring in plants, vegetables, and fruits, giving them their colors among other things. In cannabis, they make up just .14 percent of the plant.

Wilfred Ngwa, PhD, an assistant professor at Harvard and one of the study’s researchers, told Yahoo Lifestyle that the “most significant conclusion” of the study is “that tumor-targeted delivery of flavonoids, derived from cannabis, enabled both local and metastatic tumor cell kill.” He added that this could “significantly” increase survival rates for the disease.

In the study, the researchers note that the five-year survival rate for pancreatic cancer patients is 8 percent and that it often metastasizes to other organs before it’s diagnosed. It could be the second leading cause of cancer-related death in the U.S. by next year, behind lung cancer, according to the Pancreatic Cancer Action Network.

“We were quite surprised that the drug could inhibit the growth of cancer cells in other parts of the body, representing metastasis, that were not targeted by the treatment. This suggests that the immune system is involved as well, and we are currently investigating this mechanism.” – Ngwa, to CBS Local

Ngwa said the team hopes to complete pre-clinical trials with the compound by the end of 2020.

The study was published in Frontiers in Oncology.

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Weedmaps Pulls Unlicensed Listings

Weedmaps is no longer going to allow for or advertise unlicensed cannabis businesses, the company announced on Wednesday, along with plans to provide tools to help social equity entrepreneurs enter the space.

Under the changes, U.S. retailers will be required to provide a state-issued license number on their listing, and Weedmaps is restricting the use of its point of sale, online orders, delivery logistics, and wholesale exchange software-as-a-service platforms exclusively to licensed operators.

CEO Chris Beals said the changes underscore the company’s “commitment to working with lawmakers and regulators to foster a flourishing legal market.”

Last year, the company came under fire by California regulators for mapping and allowing unlicensed cannabusinesses to advertise on the site. The firm argued that advertisers on the platform “represent and warrant” that they comply with local laws and the individual companies were responsible for operating without a license. The Bureau of Cannabis Control never took action against Weedmaps.

Beals said that the company’s new social equity initiative – which includes professional development and support, resources, and access to Weedmaps services free of charge for one year – would help “give a leg up” to qualified applicants.

Julian Canete, president and CEO of the California Hispanic Chambers of Commerce, said the initiative provides “minority entrepreneurs with the skills, tools and resources they need to compete for those licenses. And get them.”

“Minorities make up the majority of the unlicensed business owners in the cannabis industry – and the overwhelming majority of them want to operate out of the shadows. The best way to address the unlicensed cannabis problem, promote small, minority-owned businesses, and correct social injustice is simple: give more cannabis business licenses to the people who deserve them.” – Canete, in a statement

Beals indicated that, along with the support program, Weedmaps plans on redoubling its efforts to educate local governments about the need for equitable cannabis licensing for medical access and economic development.

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Utah Plans Special Session to Address Cannabis Program Fixes

Utah lawmakers are likely scrapping the plan to dispense medical cannabis through health departments, opting instead for at least a dozen privately-operated dispensaries, the Salt Lake Tribune reports. The legislature is poised to hold a special session next month to address the program changes, including adding home delivery.

The decision to take local health departments out of the cannabis-dispensing equation comes after law enforcement officials warned that the plant would make those employees drug dealers in the eyes of federal authorities and some warned that the feds could cut funding. However, earlier this month U.S. Department of Health and Human Services Acting Assistant Secretary for Financial Resources Jennifer Moughalian clarified that the state’s plan would “not affect the State’s eligibility to apply for HHS grants nor … affect the outcome of the State’s application.”

“Medical marijuana is not an allowable cost under HHS grants awards; the post-award program evaluations and audits will examine the allowability of all costs,” Moughalian, said in the July 19 letter to Gov. Gary Herbert (R).

During a recent news conference, Herbert was confident that medical cannabis sales would begin in the state on Apr. 1 as outlined in the legislative-approved replacement bill for the measure approved by voters last year.

Under the proposed changes, patients would be able to order medical cannabis through a website created by the Utah Department of Health which would be delivered by a licensed courier. That site would allow electronic payment – which is not possible under the ‘central fill’ model.

The proposal would also allow cultivators to use both indoor and outdoor methods and would strengthen protections for registered patients, giving them the same protections as patients who use opioids.

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South Dakota Arrests & Charges Hemp Delivery Truck Driver

A Minnesota hemp delivery driver has been charged with cannabis possession in South Dakota after being pulled over for speeding while delivering 300 pounds of hemp from a cultivator in Colorado to a processor in Minnesota, the Argus Leader reports. According to the Minnesota Hemp Industry Association, the cargo was valued at $22,500.

Association Executive Director Joe Radinovich, a former Minnesota legislator, said the case highlights the need for consistent state laws regarding hemp even though the crop was legalized federally last year.

“A Minnesota Hemp Association member expected a shipment of legally grown hemp. Instead, their driver was arrested and their hemp was confiscated in a state that isn’t complying with the Farm Bill and allowing hemp to be transported.” – Radinovich, to the Leader

South Dakota passed its own hemp legalization law last year and in May the U.S. Department of Agriculture released a memo explicitly allowing hemp to be transported across state lines if it complies with a state-approved program.

“States and Indian tribes may not prohibit the interstate transportation or shipment of hemp lawfully produced under a State or Tribal plan or under a license issued under the USDA plan,” the guidance states, adding that those protections apply to hemp produced under the 2014 Farm Bill.

The driver was charged with possession of marijuana with intent to distribute. While the driver has been released, the hemp extractor company estimates with legal fees and product lost, the arrest has cost the company about $36,000.

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