Category: One-Hit Wonders

As more countries legalize or decriminalize the cultivation, manufacture, sale, and use of cannabis, companies across a variety of industries are looking for opportunities to capitalize on this emerging market. But the global legal landscape is confusing and constantly evolving, making it essential for people and businesses around the world to secure strong legal representation.

It is widely known that California’s Governor Gavin Newsom has signed into law (and also rejected) a flurry of bills in recent weeks.  But what has been done in the cannabis space?  So glad you asked, because, indeed, Newsom has signed several bills impacting the cannabis industry, reflecting a focus on encouraging minority participation, encouraging union membership, and clarifying select existing regulations.

According to information released by the Oregon Department of Agriculture, Oregon farmers are growing almost six times more hemp in 2019 than in 2018.   As of June 2019, Oregon had 1,342 licensed growers with more than 46,000 associated acres devoted to hemp.  By contrast, in 2018 there were 7,808 acres devoted to hemp farming.

A California federal court has rejected a trademark infringement claim on the grounds that the company alleging preceding use of the trademark manufactures cannabis-infused edibles, which are illegal under federal law. Kiva Health Brands LLC v. Kiva Brands Inc., No. 19-3459 (N.D. Cal., entered September 6, 2019). The parties to the litigation—Kiva Brands Inc. (KBI) and Kiva Health Brands (KHB)—dispute the rights of the “Kiva” trademark, and KBI argues that its ownership stems from its predecessor company selling cannabis-infused edibles in California since 2010.

The Western District of New York, in Horn v. Medical Mar
ijuana, Inc., et al., issued an initial procedural order last week in a case where the plaintiff’s purchase and use of the defendant products resulted in a failed drug test that resulted in his employer terminating his employment.  Horn v. Medical Marijuana, Inc., et al. No. 15-cv-701-FPG (W.D.N.Y.)

Key developments include recommendations put forward by Professor John McMillan AO aimed at reducing the regulatory burden on the medicinal cannabis industry, the Australian Capital Territory legalising possession of up to 50 grams of cannabis for an individual over 18 years of age and permitting the cultivation of up to four cannabis plants (excluding artificial cultivation), and the Australian Government announcing it will be investing AU$3 million into the industry for research.

Charles X Gormally, a New Jersey attorney and co-chair of the Brach Eichler cannabis group, has been closely following cannabis legislation in the state. His law practice, Brach Eichler, has a cannabis group with numerous attorneys who assist in cannabis-related legal matters.

The American Civil Liberties Union (ACLU) filed suit last week in the D.C. Superior Court on behalf of Doretha Barber, a sanitation worker with the D.C. Department of Public Works, who claims that she was denied reasonable accommodation and placed on an indefinite leave of absence after disclosing that she is a medical marijuana card-holder under the District’s medical marijuana program.

Companies entering into the emerging market for medical and recreational marijuana products and services will face unique challenges when attempting to protect trademarks. Such challenges include brand protection in states where such products are legal and navigating the trademark application process before the United States Patent and Trademark Office (USPTO).

On January 1, 2020, the California Consumer Privacy Act (CCPA), a consumer-friendly privacy law inspired by the European Union’s General Data Protection Regulation, is set to take effect. The CCPA is aimed towards bolstering consumers’ privacy rights by instituting notice, storage, retention, security, and other requirements related to collecting consumers’ personal information.

By Executive Order No. 10-09, Oregon Governor Kate Brown today directed the OHA and the OLCC to immediately adopt emergency rules, effective for 180 days, banning the sale of all “flavored vaping products.”

Amidst discussions surrounding the global climate crisis, the ACT legislative assembly has passed a bill which will see the possession of cannabis legalised for the first time in Australian history.

Cannabis was high on the Australian regulatory agenda in September, with two significant developments.

In a historic moment, the U.S. House of Representatives, yesterday, voted 321 to 103 in favor of H.R.1595, the Secure and Fair Enforcement Banking Act of 2019, also known as the “SAFE Banking Act.”  If ultimately enacted into law, this legislation would provide insurers, as well as banks and other institutions, a “safe harbor” to do business with “cannabis-related legitimate businesses” in the United States.

On September 24, 2019, Massachusetts Governor Charlie Baker declared a public health emergency, and Public Health Commissioner Monica Bharel ordered the sale or display of vaping products in retail establishments, online, or through other means, to be prohibited in the Commonwealth. The moratorium “takes effect immediately and shall remain in effect, unless extended with the approval of the Governor and the Public Health Council, through January 25, 2020, or until the declared public health emergency is terminated, or the Order is otherwise rescinded by [the Commissioner], whichever happens first.”

A preliminary draft rule related to the tracking and tracing of products in the Maine Medical Use of Marijuana Program is currently available for review on the Office of Marijuana Policy’s website: https://www.maine.gov/dafs/omp/medical-use/rules-statutes/rulemaking/draft-rules. Parties interested in providing feedback in response to the preliminary draft rules may do so through the following page: https://www.maine.gov/dafs/omp/medical-use/rules-statutes/rulemaking/feedback. Written comments on the preliminary draft must be submitted by this Friday, September 27th. A formal notice and comment period on a subsequent draft will follow.

Jennifer K. Mason & Michael G. Dailey of law firm, Dinsmore, write. “As early as September 23, 2019, the United States House of Representatives is expected to vote on the widely anticipated Secure and Fair Enforcement (SAFE) Banking Act”

“Beginning this summer, the Food and Drug Administration (FDA) through its Office of Criminal Investigations, launched a criminal probe to investigate the vaping-related lung illnesses that have affected over five hundred people across the United States. The Centers for Disease Control and Prevention (CDC) has a parallel investigation tracking the incidences of the illness. Both the FDA and CDC are working with state and local health officials to investigate the increasing number of cases nationwide.”

In this week’s edition: Plans to vote on cannabis banking legislation announced in both chambers of Congress, with predictions that House will pass the SAFE Act by the end of October, DEA increases the cannabis research quota, Battle heating up over Florida ballot initiative to legalize cannabis for adult use, FTC issues three CBD warning letters, reiterating that established FTC substantiation standards apply when advertisers make health-related representations for CBD products, California Governor Gavin Newsom issues executive order targeting cannabis- and tobacco-containing vape products, Data indicates cannabis-containing vaping products losing market share to other cannabis products after recently reported health concerns + more…