CannabisandTrademarksOhioCanna-BusinessSeminar

Columbus

February26,2017

Whatisbranding?

•  Theimageofyourcompany,products,orservicesthatyouconveytocustomers.

•  Thisincludesyournameandlogos,butalsoyourvoiceandvalues.

Whataretrademarks?

•  Thoseelementsofyourbrandthatdistinguishyoufromyourcompetitorsandidentifyyouasthesourceofthegoodsandservices.

•  Trademarksdonotincludevoiceandvalues

Whataretrademarks?

•  NOTtrademarks

•  Thegreencrossandthemarijuanaleafdonotdistinguishonecannabisbusinessfromanother.Rather,theyidentifythenatureorindustryofthebusiness.

Whataretrademarks?

•  TwoCannabisdispensariesonthesamestreetinSeattle.

•  TheVELAandGANJAGODDESStrademarksdistinguishthebusinessesfromeachotherandtherestoftheindustry.

Whydotrademarksmatter?

•  Yourtrademarkshelpyoustandoutinthemarketplaceandletyourcustomersknowthatyoustandbehindthegoodsandservicesyouoffer.

•  Usingsomeoneelse’strademark,orasimilartrademark,canexposeyoutolegalchallenges.

Whydotrademarksmatter?

•  Inthelastfewmonths,RooRhasinitiatedanumberoflawsuitsagainstretailersofcounterfeitbongsinFlorida,California,andNewYork.

REAL FAKE

Whydotrademarksmatter?

•  Californiaglassmakerorderedtopaymorethan$400,000formakingandsellingbongsthatdisplayedavariantofaSTARBUCKSCOFFEElogo

Whydotrademarksmatter?

•  HersheysuedmarijuanaretailersinColoradoandWashingtonforsellingediblesthatimitatedbrandingfromHershey’scandies

Whydotrademarksmatter?

• WouldtheowneroftheSEATTLESONICStrademarks(nowheldbytheOklahomaCityThunderclub)haveaclaimagainsttheSeattlemarijuanadispensaryusingthisSEATTLETONICSlogo?

•  Evenifitdidn’tgetsued,diditchoosebrandingthatservestodistinguishitasuniqueandthroughwhichitcommunicatesitsownbrandvoice?

HowdoyouprotectatrademarkintheUS?

•  Parallelsystems•  Federalregistration•  Stateregistration•  Common-law

HowdoyouprotectatrademarkintheUS?

•  Federalregistrationlandscape•  In2016,theTrademarkTrialandAppealBoardoftheUSPatentandTrademarkOffice

affirmedthatuseofamarkinconnectionwiththesaleofasubstancedeemedillegalunderfederallaw(suchasmarijuana)doesnotqualifyforfederalregistrationbecausetheTrademarkActonlyallowsregistrationforthe“lawful”useincommerceofamark.

•  Forexample,theTTABaffirmedtherefusaltoregisterHERBALACCESSinconnectionwith“Retailstoreservicesfeaturingherbs”(InreMorganBrown,119U.S.P.Q.2d1350)(TTAB2016).

HowdoyouprotectatrademarkintheUS?

•  Federalregistrationlandscape•  TheTTABdeterminedthatevenatrademarkownerresidinginastatethathas

legalizedmarijuanasalescouldnotobtainafederaltrademarkregistrationformarijuanagoodsandservices,concludingthattheColeMemorandumurgingfederalagenciestodirectenforcementeffortstomarijuana-relatedoffensesoutsidethelegalframeworkssetupinthestatesdidnotoverridetheControlledSubstancesAct.•  Forexample,theTTABaffirmedrefusaltoregisterthemarksPOWEREDBYJUJUandJUJU

JOINTSfor“smokelessmarijuanavaporizers”byaWashingtonstatebusiness(InreJJ206,LLC,dbaJuJuJoints,120U.S.P.Q.2d1568(TTAB2016).

HowdoyouprotectatrademarkintheUS?

•  Federalregistrationlandscape•  TheTTABdeterminedthatevenatrademarkownerresidinginastatethathas

legalizedmarijuanasalescouldnotobtainafederaltrademarkregistrationformarijuanagoodsandservices,concludingthattheColeMemorandumurgingfederalagenciestodirectenforcementeffortstomarijuana-relatedoffensesoutsidethelegalframeworkssetupinthestatesdidnotoverridetheControlledSubstancesAct.•  Forexample,theTTABaffirmedrefusaltoregisterthemarksPOWEREDBYJUJUandJUJU

JOINTSfor“smokelessmarijuanavaporizers”byaWashingtonstatebusiness(InreJJ206,LLC,dbaJuJuJoints,120U.S.P.Q.2d1568(TTAB2016).

HowdoyouprotectatrademarkintheUS?

•  Federalregistrationlandscape•  TheUSPTOhasinconsistentlyappliedthisprohibitionagainstregistrationof

trademarksusedinconnectionwithmarijuana-relatedgoodsandservices.

•  Forexample,in2016theUSPTOissuedaregistrationtoaColorado-basedbusinessformedicalmarijuanaservicesforthefollowingmark

HowdoyouprotectatrademarkintheUS?

•  Federalregistrationlandscape•  Somemarijuanabusinessesregistertheirmarksforancillarygoodsandserviceslike

clothing,food,beverages,andretailstoreservices.

•  However,theseregistrationsdonotprotectthemarkinconnectionwiththecorebusiness.

HowdoyouprotectatrademarkintheUS?

•  Stateregistration•  Userequiredinstate.•  Somestateshavepoliciesagainstregistrationsinconnectionwithmarijuana-related

goodsorservices,butlackofsubstantivereviewmeansthatthoseregistrationscangetthrough.

•  Scopeofprotectionlimitedtothatonestate.

HowdoyouprotectatrademarkintheUS?

•  Common-law•  Rightsaccrueuponuse•  Scopeofprotectionlimitedtogeographicareawheretrademarkowneroperates,

meaningunrelatedbusinessescouldestablishconcurrentrights

HowdoyouprotectatrademarkintheUS?

•  Take-aways•  Cleartrademarkrights

•  Establishanddocumentfirstuse

•  Licensetrademarkrightstobusinessesinotherstates

•  Registerwhatyoucan,whereyoucan,butalwaystruthfully

•  Ifyouplantoenforceyourtrademarkrecognizethatyoumighthavetogotocourtandtestifythatyousellaproductdeemedillegalunderfederallaw