Understanding the Patchwork of Regulatory Schemes of the Sale and Use of Hemp-Derived Products United States Department of Agriculture (USDA) Under the 2018 Farm Bill, states may submit proposals for hemp production programs to the USDA for approval. These proposals must include sufficient testing, disposal, enforcement (among other) requirements. Once a proposal is submitted by a state, the USDA will have 60 days to approve or deny it. That being said, no proposals will be…

Key Highlights of Cannabis Regulation and Taxation Act (CRTA) Without getting too deep into the weeds, below are some key highlights: Central to Cuomo’s proposal in the CRTA is the creation of a regulatory framework to be administered by a newly established Office of Cannabis Management (OCM). The OCM and licensing rules to cannabis businesses. With regard to the adult-use (21 and over) for the recreational marijuana portion of the legislation, the OCM would regulate and…

Licensing Trademarks to Washington Cannabis Businesses – Are You in “The Clear”? Headspace International LLC, a California-based marijuana business, sued Washington-based Podworks Corp., for using “CLEAR,” which Headspace claims infringes its “THE CLEAR” trademark.  But Headspace does not operate in Washington, and on that basis, the trial court dismissed Headspace’s claim, finding that it had not established trademark rights in Washington. Headspace appealed, and the Court of Appeals reversed the trial court’s decision. Though Headspace…

Hundreds of companies in Washington, Oregon, California and Canada are attracting billions in investments from just about every class of investor. But the realities of investing in cannabis are far different from those in any other industry. You’ll need to be fingerprinted, undergo a background check, surrender your banking records and be ready to deal with state and federal laws that often seem in open conflict. Any business can find itself in a cash crunch…

The shredding of the Cole memo last month leaves the cannabis industry in an uncertain regulatory environment. Industry-wide anxiety of this sort can sometimes breed business disputes that wind up in litigation.  Besides being expensive, defending a lawsuit from a business partner, investor, supplier, or employee can be a major distraction from your business goals. If tensions are simmering in your company, maybe it’s time to address any legal loose ends governing your business relationships. …

While this raises many questions for state regulators and the industry, this act should not cause fears of immediate federal enforcement actions.  The Sessions Memo leaves in place long standing guidance to federal prosecutors regarding how to exercise their considerable discretion about which violations of federal law should be prioritized for criminal prosecution or other enforcement measures.  This guidance is captured in the 1999 Memo from then Deputy Attorney General Eric Holder on Bringing Charges …