As our California cannabis attorneys know, some smaller marijuana dispensaries and delivery services are making the fatal mistake of assuming these huge, name-brand firms won’t take note if they piggyback on the larger firm’s brand recognition. This could not be farther from the truth. Marijuana trademark infringement is taken quite seriously by these big companies. Some have entire legal departments dedicated to identifying and addressing copyright and trademark infringement.

Although trademark infringement can be somewhat of a tricky area of legality for marijuana businesses because, as noted in a recent Los Angeles Cannabis Law Group blog, the U.S. Trademark Act has a specific clause requiring trademark registrants to attest their mark isn’t used to sell illegal goods. As it stands currently, marijuana is still illegal per the U.S. Controlled Substances Act.

Some cannabis companies can get around this provision by instead pursuing a copyright infringement case (depending on the circumstances), but a company like UPS taking action against a marijuana delivery service doesn’t have this problem.

It’s imperative for Southern California marijuana companies to discuss their branding and advertising strategies with an experienced Los Angeles marijuana attorney even before launching them because many of these issues can be subverted before they ever become a painfully expensive problem. We do recognize it can be difficult to overcome the intense challenges of markets across the country that are saturated (making wholly original names and logos increasingly difficult to generate) and disparately regulated (making finding which names are already in use tough).

For something like this, however, using a large brand name and logo like UPS and its iconic shield was doomed almost from the start. It is not a fight this tiny marijuana delivery upstart is likely to win. However, an experienced marijuana trademark infringement attorney may be able to help negotiate much lower penalties and perhaps work out a deal to avoid the need to close shop entirely.

Here, in UPS v. Kennedy, UPS is seeking several relief actions. These include:

An immediate injunction on using any copy or imitation marks similar to the UPS family of trademarks for any advertising, manufacture, sale, etc. of respondent’s products.

An injunction on any representation – direct or indirect – that UPS in any way is involved or endorses respondent’s products or services.

Requirement that respondent turn over any and all merchandise, logos, packaging, promotional materials, products, to UPS so that they cannot be used in the future.

Respondent transfer ownership and control of its website domain names bearing all marks, symbols, name or likenesses to the UPS brand of marks to UPS. (The company counted three domain names total.)

Repay plaintiff for actual damages, enhanced damages (per 15 U.S.C. § 1117 for willful violation of a registered trademark) and attorney fees.

Again, an experienced Los Angeles marijuana trademark attorney may or may not help a client prevail in such a case, but they can almost always help negotiate a better outcome than what would have been possible if the company chooses to go it alone. Do not discount the fact that simply closing shop will not be enough if a court decides a case in favor of a plaintiff and places a lien not only on one’s business but personal accounts.

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

Additional Resources:

UPS v. Kennedy, Feb. 13, 2019, U.S. District Court for the Central District of California

More Blog Entries:

Cannabis Copyright in California: Protecting Your Budding Brand, Feb. 13, 2019, Los Angeles Marijuana Trademark Attorney Blog

California cannabis users while stirring up the same old fear-based tropes from the anti-marijuana camp. The California Bureau of Cannabis Control is reviewing a set of proposed regulations that would allow licensed marijuana businesses to deliver cannabis products to any California private address, according to a report from Associated Press. The new regulation would cover even cities and local jurisdictions where sales have been banned.

According to the proposed amendment, CA Code of Regulations, Title 16, Div. 42, Ch. 3, Sec. 5146 (d), “A delivery employee may deliver to any jurisdiction within the State of California.” This is a slightly more clear direction than previous verbiage which stated that deliveries could be made using any public roads, which could be (and was) interpreted to mean that drivers could pass through, but not necessarily stop and make a delivery in a jurisdiction in which a sales ban was in place.It’s clear to our legal team that this proposal is an effective way to bridge the deep divide between Californians who support cannabis and their inadequate access to medical and recreational products. Residents 21 and older in all jurisdictions have been permitted to consume cannabis in a private residence since the implementation of Proposition 64 earlier this year. Deliveries simply give all Californians, even those in cities with sales bans, an option. Instead of picking up marijuana at a dispensary and driving it back to their home, someone else would do the transporting. It seems rather simple, and yet some local officials and law enforcement are portraying this as complete meltdown of law and order.

Based on the ridiculous theatrics of critics in regards to this proposal, it is obvious their local bans never had anything to do with the alleged negative effects of allowing marijuana retailers and cultivators to locate in their city. It was their way of making it as difficult as possible for law-abiding citizens to have access to products that, when consumed properly, are perfectly safe for both medical and recreational use.

There’s a reason California did not allow cities to ban personal use or growing a limited number of plants in their private residences. The state, and the citizens who voted in favor of Proposition 64, believe consuming cannabis should not be a crime. It seemed right, though, for local governments to have autonomy in how to regulate businesses in their own city limits. They have abused this freedom, though, to the point that about 40 percent of Californians have an hour or more drive to even find a legal dispensary. Cities know this ludicrous burden could be lifted by allowing businesses licensed by the state to deliver to homes. The fact is, though, for many cities, the burden is intended to be a makeshift prohibition on the drug entirely.

Our Orange County marijuana delivery business attorneys know even living in a state with some of the best cannabis laws in the country does not make us immune from attacks on the industry. Some will do anything to undermine what liberties have been achieved. Our experienced lawyers are here to help delivery companies and other marijuana businesses navigate the gray areas of the law and help protect you from unnecessary attacks.

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

Additional Resources:

Santa Clarita Marijuana Delivery Services In ‘Legal Limbo’ As California Regulates Weed, By Devon Miller, Sept. 6, 2018, KHTS Santa Clarita

More Blog Entries:

New Regulations Require Cannabis Delivery Services to Rethink Their Business Models, Oct. 9, 2017, Cannabis Law Group

While legalized possession and use of recreational marijuana throughout the state, it left a great deal of power to the local governments to dictate regulations and sales. As our marijuana business attorneys can explain, this meant even though citizens were allowed to carry and use cannabis, cities and counties had the right to ban various aspects of commercial cannabis activity, including sales.

While 57 percent of voters approved Prop. 64, local laws have made it so 75 percent of consumers cannot easily access marijuana, according to an article from SFGate. While it is important for local governments to maintain control over their jurisdictions, this disparity does not reflect the will of the people. A vast majority of Californians understand the benefits of cannabis. Many have seen its positive effects through medical use, which has been legal in California since 1996 through the Compassionate Use Act. Others have come to learn that it can be an alternative to alcohol in social situations, without many of the long-term health effects of drinking, particularly when it is consumed in ways other than smoking, such as edibles and vaping. This positive perception of the drug has led to big advancements in legislation. However some of the stigma of the past still lingers, causing local leaders to overly restrict out of fear and misunderstanding.SB-1302 seeks to keep in place the rights of local jurisdictions, but hopes to clear up some confusing language in the Medicinal and Adult-Use Cannabis Regulations and Safety Act that has prevented delivery businesses from operating freely. According to MAUCRSA Sec. 63, the “A local jurisdiction shall not prevent delivery of cannabis or cannabis products on public roads by a licensee acting in compliance with this division and local law as adopted under Section 26200.” While some thought this permitted cannabis deliveries to any location, many have interpreted this to mean that public roads can be used to deliver marijuana … elsewhere. The actual delivery of the product can still be restricted in a city if the local officials so choose; they just can’t stop delivery services from driving through a city to their end destination.

The new bill would allow local governments to continue to ban businesses from setting up shop within their borders, but would prevent the passage of any ordinances that would prohibit deliveries to residents.

Our Orange County marijuana business lawyers recognize this as a commonsense compromise allowing citizens to access a drug that is totally legal to them while allowing cities to retain control over their own lands and zoning laws.

Local marijuana company owners and operators often find it difficult to navigate this complex array of state and local provisions. There are many potential legal and regulation snags companies can hit, and there is a significant risk of investment loss on the line – even if you’re held up for “only” a few weeks or days. Having a marijuana attorney on retainer can help ensure you are meeting all your obligations (and that all your rights are respected) is an imperative.

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

Additional Resources:

Will Cannabis Delivery Survive in California’s Legal Market?, Feb. 6, 2018, By Peter Hecht, Leafly

More Blog Entries:

New Regulations Require Cannabis Delivery Services to Rethink Their Business Models, Oct. 8, 2017, Cannabis Law Group

Delivery businesses specializing in cannabis have a unique set of rules to follow. They must abide by the laws in the local jurisdiction in which their home base is located. But they also have to take into consideration laws that dictate transport. This has led to a particular set of challenges in Sacramento County, according to the Sacramento Bee.

While adult-use marijuana was legalized in the state Jan. 1, under Proposition 64, each local government was allowed to set its own terms. Under the law, deliveries can only be made between cities that allow it. This can be a real disadvantage to patients, some who have difficulty leaving their homes, and business owners. And product must be kept in the city where the business has a license.

In Sacramento County, as of now only the city of Sacramento has plans to receive deliveries. The city has not issued any permits yet, but eight delivery companies have registered while the permit program is being established. Meanwhile Sacramento’s pot czar says many businesses are operating without licenses, and he is on a mission to rein them in. A recent tally on a marijuana delivery website showed about 200 delivery businesses in the county.Our experienced marijuana delivery business service attorneys in Los Angeles know it’s difficult establishing a new company with numerous laws and regulations to consider. We know the challenge intensifies when you have to follow regulations that span across multiple city lines. And when your business is just getting off the ground, fees and taxes can be intimidating. Further, when you see peers skipping these important steps, it might be tempting to follow suit. But doing so can not only get you in trouble, it can hurt the marijuana industry as a whole, hurting other businesses that are in compliance.

Some delivery services might think they fall under the umbrella of a collective, which would allow them to operate without a permit until next year. But there are specific requirements that must be met to be considered a collective, namely that it must be a nonprofit. They would also need to be registered with the California Department of Tax and Fee Administration.

Regardless, the days of operating permit-free won’t last for long. Sacramento marijuana regulators are working with city police to establish an enforcement plan. Warning letters have already gone out to operations across the state.

It’s important that businesses who are not operating with a permit or who aren’t sure they are in compliance get legal counsel to advise them on how to move forward. Our experienced attorneys have the know-how to advise you on business plans, assist you with business licensing, and offer guidance on establishing collectives. Otherwise owners could face fines, lose their business, or more. Avoiding these regulations might not seem like a big deal now, but any money being saved in the short term could cost your business big time in the long run.

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

Additional Resources:

Are You Getting Marijuana Delivered to You? If So, It’s probably Illegal, Feb. 16, 2018, By Brad Branan and Phillip Reese, The Sacramento Bee

More Blog Entries:

City of Los Angeles Targets Another Marijuana Delivery Service, May 21, 2016, Cannabis Law Group

Many cities especially are passing regulations in order to limit the influence of the state on how the city chooses to oversee marijuana delivery services, growers, collectives, and edible and concentrate producers. Delivery services in particular must navigate a continually growing list of rules, ranging from methods by which the businesses can make deliveries to where they are allowed to set up. In Hesperia, California, for example, the city council approved an amendment that expands the area approved for establishing delivery services and affirms cannabis activity regulations, according to an article from The Daily Press. Marijuana delivery businesses in the cannabis Commercial Industrial Business Park zone district of Hesperia must be located at least 600 feet away from residential and agricultural zones, schools, day cares, playgrounds and parks, places of worship, among other restrictions. These rules are in line with regulations on other restricted businesses in the city, such as adult businesses, residential care units, and liquor stores. The majority of the city council voted in favor of expanding the area in which delivery services could operate, citing medical marijuana use and a desire to show compassion and offer relief to residents who are suffering. But the one dissenting councilperson brought up a recurring concern that such expansions not only increase accessibility for medical users, but could also open up the possibility for more irresponsible marijuana use. He cited an alleged increase of homelessness and a leap in drug violations in schools in Colorado in the five years since legalization occurred in that state. He pointed the finger at an increase in drivers involved in fatal crashes testing positive for marijuana use, though it’s not clear if it is correlation or causation that has led to this jump. While the compassionate response toward medical cannabis users has helped to further the cause in a positive way, there are still many negative perceptions and misunderstandings that have led to a myriad of added regulations and restrictions. This is why it is so important for entrepreneurs looking to set up marijuana delivery services to speak to a cannabis lawyer. It is challenging enough to keep up with California state laws, but when laws differ from city to city, it’s extremely difficult to keep up. An experienced marijuana business lawyer can give you the guidance you need to prevent potential future legal trouble that can be very costly or endanger your business. Not to mention, it’s essential for business owners to remember that marijuana is still a Schedule One substance on the U.S. Controlled Substances Act of 1970 (USCSA), opening the door to many more legal considerations when properly setting up your marijuana delivery business. Our cannabis business attorneys will show you how to navigate potential federal legal obstacles while also being compliant with state and city regulations. The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Hesperia council votes to expand cannabis business zone, November 26, 2017, By Rene Ray De La Cruz, The Daily Press

More Blog Entries:

New Regulations Require Cannabis Delivery Services to Rethink Their Business Models, October 9, 2017, by Cannabis Law Group