My Back Might Need Protection: IP in the Cannabis Industry

Intellectual property is commonly understood in the cannabis community as being synonymous with trademarks. But IP encomapsses much more than logos and taglines. It includes copyright patents and trade secret protection, and for companies creating unique formulations and for hemp and marijuana plant breeders, the options for IP can play an important role in your overarching business strategy.

You might think that because cannabis – particularly high-THC marijauna – is federally illegal, the U.S. Patent and Trademark Office (USPTO) cannot issue patents for strains of cannabis. But this is not the case. However, there are many issued patents on cannabis strains as well as pending patent applications currently before the USPTO.

Cannabis Operators Protect Their Intellectual Property

Back in march we sat down with Hoban Law Group IP counsel, Cathleen Rocco on The Hoban Minute to discuss the options cannabis operators have to protect their intellectual property, the risks CBD manufacturers take on who don’t patent their formulations, and whether or not high-THC cannabis varieties are able to be patented through Plant Variety Protection (PVP).

Cathleen, who has spent the last 15 years helping inventors capture patent and trademark rights, navigate intellectual property risks, craft IP strategy and build a robust patent portfolio, points out that there’s a lot of misunderstanding in the cannabis industry with respect to IP.

When it comes to high-THC cannabis strains, Cathleen points out that it’s not the job of the USPTO to police what’s legal and what isn’t. With this in mind, she highlights that in light of the fact that we are seeing such a drastic and dramatic push towards registering all forms of IP in the cannabis industry, it’s very important for cannabusiness owners to think terms about their business goals, the place of their products in the market, and what makes the most sense for them in term of intellectual property protection. If your business is technology-driven, you need to be thinking in terms of taking patent protection as there is no other way to ensure that you have control over how your invention is used. Cathleen strongly encourages cannabis entrepreneurs to file patent applications.

Patents Are a Business Asset

While investing in IP can be potentially expensive, patents are a business asset, and having patent protection allows you to have negotiation leverage and command over price. Ultimately. it goes to the bottom line of your company and can be a revenue driver. This is why it’s very important to have the help of a good intellectual property attorney who is familiar with the ins and outs of registration requirements and can help you decide what makes sense for your business to get the registrations accomplished.

Recently, the Hoban Law Group was involved in an incredibly important IP case, as it was the first case in federal court in which a patent holder seeks to enforce a patent concerning cannabis-related inventions. In young industries, patent claims tend to be very broad. This was certainly the case for this particular matter. As the industry matures, patentability will narrow as a result of prior art – the searchable literature, patent applications, and issued patents that examiners must consider in order to determine whether an invention meets the criteria for patentability – becoming more and more crowded.

What about Plant Variety Protection (PVP) for industrial hemp?

For decades, European plant breeders have been using PVP and abiding by the rules of the International Union for the Protection of New Varieties of Plants (UPOV). With the recent reemergence of industrial hemp in the U.S., it’s important to think about how American hemp breeders will use PVP. Much of this work will be done in terms of identifying varieties that have a number of advantageous and superior traits including growing characteristics, micro-climate acclimation, high yields, and lignin content, just to name a few. We have a very strong agriculture industry here in the United States and I have every confidence that hemp breeders and cultivators will quickly “catch up” to the innovation we’ve seen in Europe.

It is a critical time for operators in the cannabis industry to have a crash course in patent law. With so many innovations and new technologies being developed in the space, there is a great need for protecting IP. While many inventions are patentable, you must be proactive in order to get ahead. The HLG IP team is a wealth of knowledge and can help you get a leg up in this respect. Gone are the days we stopped to decide where we should go, we just ride.

My Back Might Need Protection: IP in the Cannabis Industry

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