Hemp farming attorneys in Orange County noted the U.S. Department of Agriculture’s recent announcement that growers of hemp can now officially submit applications for protection of their intellectual property.

Hemp Intellectual Property Protections Offered

Now for the first time since the ill-fated War on Drugs launched, the USDA’s Plant Variety Protection Office expressly affords intellectual property right protection to hemp cultivators, instilling the power to pursue claims against other growers who attempt to capitalize on unique variety of plants developed by other farmers.

Patents allow the person holding them the right to prohibit others from growing, making, using, offering, importing or selling the protected product. U.S. patent law holds that valid patents extend to those inventions that are novel, useful and not obvious.

There are a few different subcategories of patents:

• Utility – the way it works
• Design – the way it looks, ornamental properties
• Plant – for an asexually produced new variety of the plant

To qualify for this protection, plant breeders of new tubers and seeds will have the right to halt others from advertising and profiting off their unique hemp varieties.

Other cultivators can grow, harvest and market products with those varieties – but only with the express permission (usually via contract) from the original owner of that intellectual property, typically in exchange for a royalty fee.

Obtaining Intellectual Property Protection for Unique Hemp Strains

California hemp farmers should seriously consider securing this protection, if they haven’t already. Not only does it secure the product of your hard work and investment, it wards off claims that you may be infringing on the rights of another. Certification doesn’t automatically guarantee a dispute will be settled one way or the other, but the company holding certification will have the stronger claim.

Our Orange County hemp farm attorneys can help with IP strategies for hemp growers, as well as prepare and submit the electronic application on your behalf.

Growth and production of industrial hemp isn’t new in the U.S., but it’s operated in a vast legal gray area under the heavy thumb of federal regulation. Federal patent and trademark agencies in the past issued express refusals to issue intellectual property protection rights to any product or idea that couldn’t be marketed as legal. Thus, cannabis and virtually all related products – hemp included – were deprived, leading to branding rip-offs left-and-right.

What changed was the 2018 Farm Bill, which legalized hemp and CBD, removing both from the list of federally-controlled substances.

Although some hemp farmers and ancillary businesses may have an understandable degree of wariness, consider that the U.S. Department of Health itself actually just obtained a utility patent for possible treatment of brain damage regeneration using non-psychoactive elements of the cannabis plant. If you have questions about the benefits or process of obtaining a patent for industrial hemp in Southern California, our Orange County hemp cultivation attorneys can help.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Here’s how to keep counterfeiters from duplicating your marijuana products, April 30, 2019, By John Schroyer, Marijuana Business Daily

More Blog Entries:

California Industrial Hemp Farming: What to Know to Do It Legal, May 9, 2019, Orange County Hemp Lawyer Blog

A week after the farm bill was passed, the FDA Commissioner issued a statement underscoring the department’s position on CBD oil and related products. The commissioner stated in plain terms that CBD oil is a drug ingredient, and thus is unlawful to put in food or health products absent any prior approval from the FDA, with the main concern being potential risk to patients when products haven’t been proven to be effective or safe.

Remember: CBD is the non-psychoactive compound found in hemp, which is a version of the cannabis plant that is very low in THC. It’s the THC infused naturally in marijuana that gives off the high. CBD is in a number of medications that are approved by the FDA for treatment of certain ailments. Epidiolex, a CBD-oil infused syrup used to treat seizures, is one, having just received its stamp of approval this past summer.

Los Angeles marijuana product sales attorneys understand the FDA memo released after the farm bill approval did indicate the agency deemed hemp safe as an ingredient in foods. Still, the stance on CBD oil is disappointing. It’s unlikely to be the last word on the matter, though. For one thing, “stances” can change. The groundswell of Congressional support for a more sensible classification for marijuana and its derivatives is snowballing as an increasing number of states approve the drug (both medicinal and recreational) and the amount of corporate and government investment balloons.

Already, numerous legislators have signaled they intend to once again push the feds to adjust their marijuana policies. They’ve been getting added pressure from hemp farmers in Oregon, California and other locations. As one senator from Oregon noted, there needs to be a clear pathway for CBD oil and hemp products to get to the market legally and safely. In this case, one lobbyist the Chicago Tribune, this represents an opportunity for the industry to help the government better understand hemp and CBD oil, its benefits for a wide range of medical conditions and its lack of health risks (not to mention the huge financial gains for state and local governments, jobs created, etc.).

The FDA commissioner did say the agency will be hosting a meeting open to the public sometime in the near future that specifically invites stakeholders within the hemp industry to provide comment and weigh in on existing federal policy.

If you are a grower of hemp in California or a producer of hemp derivatives like CBS oil or products made with them, our Los Angeles marijuana product sales attorneys can help you best navigate the many potential administrative, legal and financial hurdles.

Hemp was already legal in a number of states prior to Trump signing off on the farm bill. However, the farm bill removed hemp and other parts of the cannabis plant from the Controlled Substances Act, relegating products made with hemp seeds, oil and powder protein to “General Recognized as Safe (GRAS)” status, allowing farmers to purchase crop insurance, have eligibility for grants and loans and write off expenses for their business when their file their taxes – just as any other farmer would.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

F.D.A. moves on hemp, December 2018, By Jeff Gelski, FoodBusinessNews.com

More Blog Entries:

More California Cannabis Testing Regulations on the Horizon, Dec. 17, 2018, Los Angeles Marijuana Product Sales Attorney Blog

It’s a measure that could potentially be a cash cow for California farmers, as well as those across the U.S.

Hemp is defined in California Health and Safety Code Section 11018.5 as the fiber or oilseed crop limited to types of the cannabis plant with no more than three-tenths of THC. It’s production is overseen by the California Industrial Hemp Program, with Division 24 of the California Food and Agricultural Code providing for the cultivation of industrial hemp by registered growers as well as established agricultural research sites. The reason this federal measure is so important is that up until that law goes into effect, hemp is still considered a Schedule I narcotic per the CSA, which California hemp farming attorneys know means unless specifically exempted there, any hemp-related activity is still technically subject to federal prosecution, no matter what the state law says.

As reported by Bloomberg, while some farmers have nearly gone bankrupt cultivating existing crops, many see hemp as having limitless potential, as everything from the root down to the base fibers and the bark can be harvested and sold. Hemp used to be a common material used in U.S. products – everything from paper to rope. However, that changed in the 1930s when the federal government began clamping down on cannabis starting in the 1930s. In addition to some 3,500 farmers in 23 states, several large companies have shown an interest in bringing back hemp-related products, noting the market could reach as much as $3 billion in sales within five years.

Applications of hemp include:

• Hemp-derived CBD – 34 percent
• Industrial uses – 28 percent
• Personal care – 14 percent
• Food – 11 percent
• Textiles – 9 percent
• Other – 4 percent

CBC (cannabidiol) is an extract that is found in cannabis, but is absent of any THC, which is the primary psychoactive component of marijuana. The product helps relieve anxiety, nausea, inflammation and pain. It’s currently mostly sold online and in specialty shops, in oils, candies, capsules and sparking water. It’s also been approved to treat childhood epilepsy.

Hemp is looking like an especially attractive crop for struggling corn and soybean farmers.

Even with the existing restraints, the hemp market in the U.S. is valued at $820 million last year, and expanded to $1 billion in 2018. If the plan is made fully legal by next summer, that could double the market by next year, and grow by another 50 percent within five years (depending on how rapidly retailers, agriculture and the banking industries respond).

The main hurdle to growth is the lack of infrastructure for hemp products.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Congress is poised to finally lift its longstanding ban on industrial hemp, Dec. 4, 2018, By Paul Armentano, The Hill

More Blog Entries:

California Marijuana Lawyers Watch Local Elections for New Regulations, Oct. 25, 2018, California Hemp Farmer Attorney Blog

This is yet another victory for those who have been pushing for an entry for local production in the U.S. market. Last year, the Hemp Industries Association estimated the plant, which has a host of valuable purposes, ranging from baby care to foods to auto parts to building materials to clothing. The hemp market nationwide was estimated to be around $620 million in 2014.

Even though hemp has no intoxicating properties, it’s been heavily restricted by federal authorities in the same manner as cannabis. That changed when President Barack Obama signed the 2014 Farm Bill, which contained an amendment that allowed for the legalization of hemp cultivation and production for research purposes. The measure also allowed states that had legalized the crop to continue growing it within the parameters set forth by the state’s agriculture department and local research institutions.

As of right now, 21 states are legally allowed to grow hemp. That includes California.

The new law in North Dakota exempts the need for a federal stamp of approval before farms can begin growing and processing the plant.

Although the issue of legal hemp cultivation is one that seems to have gained traction rather quickly in the U.S., the reality is we are the only developed country that doesn’t cultivate hemp industrially on a large scale as an economic crop. That’s according to the Congressional Resource Service. There are more than three dozen countries that grow and produce hemp industrially, including Great Britain, Germany, Italy, Switzerland, Australia, Spain, Sweden and China.

The largest importer of hemp products is the U.S. Most hemp fiber and related products are imported from Canada and China. Very clearly, there is a demand here for these products, and locally-produced crops could help drive down costs and improve local economies.

In North Dakota, HB 1436 passed 87-5 in the House and 46-1 in the Senate.

Other states considering hemp legalization measures include Missouri, Kansas, Florida, Minnesota and Massachusetts.

According to a recent analysis by The Hill, part of the reason these laws have been passing so quickly is because they are receiving a groundswell of support from conservative groups as well.

In fact, a group of republicans has introduced the Industrial Farming Act of 2015, which would remove marijuana from the Drug Enforcement Administration’s list of banned drugs. Although hemp is grown from the same plant as marijuana, it’s generally accepted that it is less potent and isn’t banned for purposes of producing everything from fuel to food.

With such a wide range of practical commercial applications, conservative lawmakers are now arguing opening the doors for hemp cultivation and production nationwide makes good economic sense.

The federal bill is backed by republicans in Colorado and Kentucky, as well as Democrats from Oregon.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources: North Dakota Lawmakers Vote to Legalize Industrial Hemp, March 17, 2015, By T.J. Baker, The Daily Chronic More Blog Entries: Marijuana Legalization Legislation Pending in GA, MA, OH, TN, VT and TX, March 17, 2015, Riverside Marijuana Lawyer Blog

Although Gov. Jerry Brown (D) has signed a groundbreaking measure that effectively legalizes industrial cultivation in the state, our California hemp lawyers know that it is contingent upon approval from the federal government.

Sen. Mark Leno (D-San Francisco), author of SB-566 Industrial Hemp, said the passage of the measure puts California in a prime position to grow industrial hemp, as soon as the federal government offers up the green light.

Despite the many diverse benefits and uses of the hemp plant, it’s cultivation has been illegal in the U.S. since 1957 as a result of its relation to marijuana.

Hemp contains a very low level of THC, which is the primary intoxicating chemical in marijuana that makes the user high.

In 1998, the U.S. approved the import of hemp products from other nations. Those products include goods such as fuel, food and clothing fibers.

A number of other states too have approved the legalization of industrial hemp. However, they are paralyzed from further action until the U.S. Justice Department says farmers can move forward without fear of criminal prosecution.

One of those, Kentucky, legalized hemp cultivation in April. However, the state’s attorney general issued an advisory indicating that because the substance remains illegal under federal law, anyone who tries to grow it at this juncture faces prosecution on federal felony charges.

Colorado recently made history for becoming the first state in 60 years to begin harvesting the product – in spite of federal laws. A farmer in Springfield harvested some 55 acres of hemp by hand, as advocates watched on.

Colorado, of course, is one of only two states so far to legalize marijuana for recreational purposes. With the U.S. Justice Department saying it would allow Colorado’s new marijuana law to go into effect without hassle, some farmers in the state are taking that to mean that they may also move forward with the cultivation of hemp.

Officials in California, however, are urging a more cautious approach. Leno, for example, pointed to the Justice Department’s statement that the federal government would not interfere when states have strong regulatory and enforcement systems in place. He said it would be nonsensical for that statement to be applicable to marijuana (a drug) and not to hemp (a non-drug).

Still, he intends to request some form of clarity from the state attorney general’s office, as well as the U.S. Department of Justice before giving farmers the go-ahead to proceed.

He expects approval to be granted soon. He said it wouldn’t make sense for the government to “hold hemp hostage,” especially while it has agreed not to act states’ rights to approval recreational marijuana.

Those who are interested in becoming involved in the industrial hemp cultivation movement in California should consult soon with an attorney whose experience in this field is extensive.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

California Legalizes Industrial Hemp, With A Catch, Oct. 3, 2013, By Robin Wilkey, The Huffington Post More Blog Entries: Hemp Reform Efforts March On, Sept. 18, 2013, California Hemp Lawyer Blog

Currently, the wide-sweeping federal ban on the plant also encompasses the production of industrial hemp, a product that has proven incredibly versatile and useful. However, our Los Angeles marijuana lawyers know that its use has been tightly restricted, despite the fact that 10 states have pleaded with federal authorities to ease their stance.

It appears today those interest groups may finally have a good shot at success, with the Industrial Hemp Farming Act (Senate Bill 359 and House Resolution 525) are pending in both chambers. Additionally, an amendment to the Farm Bill, cosponsored by a Republican from Kentucky and a Democrat from Oregon, passed the House in July and is now slated for a hearing before a joint House-Senate conference committee.

At a recent Capitol Hill briefing, intended for clarification of the Justice Department’s updated policy directive concerning legal and medical marijuana, both federal and state elected officials reported that their interpretation was that the directive also extended to hemp production.

That directive, you may recall, was publicly announced by U.S. Attorney General Eric Holder, and was in response to the passage of laws in Washington and Colorado that by popular vote allowed the legalization of marijuana for recreational purposes. Holder said the approach would be “trust but verify,” meaning that the DOJ would reserve the right to file a preemption lawsuit, as the substance continues to be illegal under the Controlled Substances Act. However, the agency would not pursue enforcement action in states where state and local governments have enacted effective regulatory and enforcement systems to address any issues that might pose a threat to public health, safety or other law enforcement concerns.

So long as the controls are effective in practice and not just on paper, Holder indicated, his office wouldn’t intervene.

What that means for hemp production isn’t entirely clear, as Holder didn’t address this aspect specifically.

In Kentucky, where lawmakers have been working hard to pass laws that would allow industrial hemp production, elected leaders reasoned that hemp had only ever been banned because of its classification as belonging in the cannabis family. Holder’s announcement, they said, pertained to the regulatory framework for cannabis. Therefore, they are confident that the legislation as it is written will be effective from the standpoint of keeping federal prosecutors and law enforcement at bay as they seek to legalize hemp for industrial purposes. This has continued to be a key point of contention in getting these measures to pass.

Still, backers of the hemp legislation say that they intend to send a formal letter to the U.S. Drug Enforcement Administration, informing them of the specific intentions for hemp production starting as early as next year.

In Kentucky, legislators hope hemp production will replace tobacco production, which has declined sharply in recent years in response to public health concerns. The hope is that hemp will become a cash crop that will stimulate jobs and create useful products that will prove beneficial for society as a whole.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources: Hemp in the Time of New Federal Marijuana Policy, Sept. 14, 2013, By Phillip Smith, The Daily Chronic More Blog Entries: Felony Marijuana Crimes in Washington State Targeted by Advocates, Sept. 5, 2013, Los Angeles Marijuana Lawyer Blog