General – Page 31 – Cannabis Industry

September 4, 2018 by Duane Morris

Cannabis Patents: Patent Litigation in an Emerging U.S. Industry

Even though cannabis remains a Schedule I controlled substance under U.S. federal law, the United States Patent Office (USPTO), a federal agency of the U.S. Department of Commerce, routinely grants patents covering cannabis-related technologies. The Schedule I classification of cannabis is not relevant to patentability. As with any other invention, to be patentable, a cannabis-related invention must be new, useful, and nonobvious, and teach one of ordinary skill in the art how to make and use the invention. The USPTO has determined that many cannabis-related patent applications have met these requirements. Patents granted to cannabis-related inventions cover an enormous range of technologies, including cannabis plants, growing systems, extracts, methods of making extracts, foodstuffs, veterinary products, and methods of treating various diseases and disorders.

To read the full text of this article by Duane Morris attorney Gretchen L. Temeles, Ph.D., please visit the Cannabis Law Journal website.

August 21, 2018 by David E. Landau

Bank Closes Campaign Account of Pro-Cannabis Candidate

Banking continues to be a challenge for the cannabis industry. But, Wells Fargo recently erected a new barrier: It closed the campaign bank account of Nikki Fried, candidate for Agriculture Commissioner of Florida. According to a report in the New York Times on August 21, 2018, the bank took notice of the candidate’s advocacy for better access to medical marijuana. It then asked the campaign whether it accepted contributions from lobbyists for the medical marijuana industry. When the campaign replied it accepted contributions from executives and employees in the industry, Wells Fargo closed the account. The campaign now banks at BB&T. Full New York Times Story

August 16, 2018 by Seth A. Goldberg

Constellation Brands’ $4B Cannabis Investment

On August 15, 2018, Constellation Brands, which owns popular beer, wine and spirits products, such as Corona, Robert Mondavi and High West, announced it is investing $4 billion in Canopy Growth, which is one of the leading investors in the global legal cannabis market. The announcement boosted Cannabis market stocks in the US and Canada, and is likely to catch the eye of big alcohol, big tobacco, big pharma and larger consumer products companies that have been interested in entering the growing legal marijuana markets. More and more companies once-hesitant about doing so are finding that good counsel can help them navigate the regulatory hurdles that might otherwise stand in the way of profiting from this exciting market.

July 26, 2018 by Duane Morris

“Cannabis 107” Webinar Replay Available

A video replay of the webinar “Cannabis 107: The U.S. and Canadian Cannabis Markets: 2018 Mid-Year Review” is available to view.

June 29, 2018July 2, 2018 by Seth A. Goldberg

Momentum Builds With Schumer’s Bill To Legalize Marijuana

Just weeks after Senators Elizabeth Warren (D-Mass) and Cory Gardner (R-Colo) introduced bi-partisan legislation to make marijuana lawful under a state’s marijuana laws also lawful under the Controlled Substances Act (CSA), Senate Minority Leader Chuck Schumer (D-NY) introduced legislation removing marijuana from the CSA altogether on Wednesday, June 27. Schumer’s bill also comes just one day after Oklahoman’s passed legislation legalizing medical marijuana in their traditionally red state, and one day before the U.S. Senate passed legislation legalizing hemp for all purposes, including extracts from hemp, such as cannabidiol.

By removing from the purview of the CSA, state-legal cannabis and proceeds derived therefrom, the Warren/Gardner legislation, if passed, would likely have the effect of nationwide legalization, but state operators and consumers would still need to be concerned about marijuana’s Schedule 1 status under the CSA, whereas the Schumer bill, if passed, would eliminate those concerns by removing marijuana from the CSA.

June 27, 2018 by Duane Morris

Pennsylvania Legislature Rescues Medical Marijuana Clinical Research Program

By David Landau

On Friday June 22nd, Pennsylvania Governor Tom Wolf signed into law a bill allowing Pennsylvania’s Medical Marijuana clinical research program to proceed. A Pennsylvania court a short while ago enjoined the program. Continue reading “Pennsylvania Legislature Rescues Medical Marijuana Clinical Research Program”

June 21, 2018 by Duane Morris

“Cannabis 106” Webinar Replay Available

A video replay of the webinar “Cannabis 106: Banking and Financing in the Cannabis Industry” is available to view.

June 12, 2018April 6, 2020 by Justin A. Santarosa

California Department of Public Health’s Re-Adopted Emergency Regulations

The California Department of Public Health (CDPH) is the state agency designated under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) as responsible for regulating cannabis manufacturing.

The CDPH issued emergency regulations for manufacturers in November 2017, and has now proposed readopting those regulations for another 180 days. Based on feedback from the public and stakeholders in the industry, the CDPH has proposed some changes to these regulations.

This blog post will highlight the changes to the CDPH emergency regulations and identify key issues for manufacturers. In separate posts, we will be describing the changes made by the California Department of Food and Agriculture and the California Bureau of Cannabis Control.

Changes to Emergency Regulations:

The CDPH has removed the distinction of A and M Licenses and now only requires one application and applicants will only have to pay one licensing fee. Previously you had to submit two applications and pay two separate licensing fees if you wanted to operate in the medicinal and adult-use market.
The readopted regulations have now incorporated the previously released shared-use facility regulations, which allow a manufacturing premises to be used my multiple businesses that take turns utilizing the space and equipment. This allows for operations similar to a commercial kitchen or agreements in which larger manufacturers offer space and use of equipment to smaller manufacturers.
The CDPH has removed tinctures from the definition of a product containing more than 0.5% alcohol by volume. However, tinctures cannot be sold in a package larger than two fluid ounces and shall include a calibrated dropper or other measuring device

The change to only a single application for both medical and adult-use is a welcome change for manufacturing businesses. Overall, the CDPH did not make significant changes to its regulations.

If you have any questions about the regulations, please contact Justin Santarosa in our Los Angeles office.

June 8, 2018June 8, 2018 by Seth A. Goldberg

Cannabis Banking Concerns a Focus of Proposed States’ Rights Bill

On Wednesday, an article I wrote describing the public safety concerns that result from the lack of banking in the cannabis industry due to the federal prohibition of marijuana was published in the National Law Journal.

Yesterday, Senators Elizabeth Warren (D-Mass) and Cory Gardner introduced bipartisan legislation that, if passed, would make the regulation of marijuana a state issue. Comments by Senator Gardner show public safety issues resulting from the dearth of banking providing services to the industry are a focus of the newly-proposed legislation. The Hill reports Gardner stating when introducing the legislation:

“This city of Denver, the state of Colorado, can collect taxes … they can take it to the bank,” Gardner said. “But if you’re in the business, if you work for the business, you can’t get a bank loan or set up a bank account because of the concern over the conflict between the state and federal law. We need to fix this public hypocrisy.”

It was widely reported on April 13, 2018, that President Trump promised to Senator Gardner that he would support a states’ rights approach to marijuana, which promise appears to have resulted in this proposed legislation. A lot has to happen before this bill reaches Trump, but if it does, a veto may be unlikely. Such states’ rights legislation could then pave the way for more banks to service the industry.

June 1, 2018April 6, 2020 by Justin A. Santarosa

Bureau of Cannabis Control’s Re-Adopted Emergency Regulations

The Bureau of Cannabis Control is the state agency designated under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) as responsible for issuing licenses to and regulating distributors, retailers, delivery-only retailers, microbusinesses, and testing labs.

The BCC issued emergency regulations in November 2017, and has now proposed readopting those regulations for another 180 days. Based on feedback from the public and stakeholders in the industry, the BCC has proposed some changes to these regulations.

This blog post will highlight the changes to the BCC emergency regulations and identify key issues for distributors, retailers, delivery-only retailers, microbusinesses, and testing labs. In separate posts, we will be describing the changes made by the California Department of Food and Agriculture and the California Department of Public Health. Those posts can be found here and here.

Changes to Emergency Regulations:

The BCC has removed the distinction of A and M Licenses and now only requires one application and applicants will only have to pay one licensing fee. Additionally, license fees have been reduced. Previously you had to submit two applications and pay two separate licensing fees if you wanted to operate in the medicinal and adult-use market.
A delivery employee may now complete multiple deliveries of cannabis goods if they are prepared by the retailer prior to the delivery employee leaving the licensed premises. The total amount of cannabis goods in the delivery vehicle may be up to $10,000, the previous limit was set at $3,000.
The definition of owner has been amended to specify that the chief executive officer and/or the members of the board of directors of any entity that own 20% or more of a commercial cannabis business will be considered “owners.”
The definition of financial interests has been amended to include “an agreement to receive a portion of the profits of a commercial cannabis business.” Commercial cannabis business and service providers will have to review their agreements and applications to determine if certain amendments will need to be made to include other people or businesses as having a “financial interest” in a commercial cannabis business. Interestingly, this change was not made in the definition of “financial interest” under the CDFA and CDPH regulations.
Retail stores may not sell or deliver cannabis goods through a drive-through or pass-out window and sales cannot be made to people within motor vehicles.
License applications must now include:
- Cannabis waste procedures; and
- Delivery procedures, if applicable.

These changes show that the BCC and the other regulatory agencies are being responsive to their stakeholders and while not all changes are positive, we believe this is a step in the right direction for cannabis businesses in California.If you have any questions about the regulations, please contact Justin Santarosa in our Los Angeles office.