Articles Tagged with Los Angeles marijuana business lawyers

A cigarette manufacturer has filed a trademark infringement lawsuit against a California cannabis company alleging the smaller firm swiped their long-standing brand. The case highlights the fact that trademark registration and branding are valuable assets for any cannabis company, but accusations of trademark infringement can damage your reputation as well as your pocketbooks.marijuana lawyer

Bloomberg Law reports that the owner of Kool menthol cigarette brand alleges in Los Angeles federal court that the logo used by the cannabis company Bloom Brands is far too similar to the interlocking “O” letters used by Kool. The marijuana business has reportedly applied for federal trademarks for the branding images that would cover its oral vaporizers and e-cigarettes. The company that owns Kool, however, sent the firm a cease-and-desist letter late last year.

Now, according to the lawsuit, the cannabis business is accused of trying to profit off the established branding of Kool in a “transparent rip-off.” Continue reading

One of the first of its kind California civil racketeering lawsuits involving two warring former cannabis business partners has been dismissed by a federal judge citing U.S. prohibition on marijuana. Los Angeles cannabis lawyer

Schulman et. al., v. Kaplan et. al. was a $200 million case filed last year in the U.S. District Court for the Central District of California pitting one marijuana grower against another, citing the Racketeer Influenced and Corrupt Organizations Act (RICO).

The case was unique because the majority of RICO legal battles were filed by those trying to shut down cannabis grow operators, arguing the farms slashed the value of their property due to the pungent odor of the plant and concerns over security. This matter, on the other hand, was a dispute between two fellow farmers who had once worked together. Continue reading

In the four years since marijuana has hit the legal market in California, the legal parameters of the industry have transformed at sometimes breakneck speed. The industry is, in a sense, always looking ahead. But because the laws and regulations have changed so quickly, it’s imperative to consult with your Los Angeles marijuana business attorney to periodically look back at older agreements and contracts – ensuring you aren’t overlooking any previous obligations or restrictions. Los Angeles marijuana business attorney

This point was underscored recently in the California Appellate Court decision in Metsch v. Heinowitz. In this case, the appellate court refused to enforce a contract to produce and distribute marijuana edibles. The contract had been drafted in 2014 – at a time when cannabis wasn’t legal for recreational use in California. This factored significantly in the court’s ability to enforce it. Continue reading

The COVID-19 pandemic has left much of the country facing some stark economic realities that don’t bode well for many businesses, some of which have already folded. But there could be a bright spot for California cannabis companies. Los Angeles corporate cannabis lawyer

Government agencies – from the federal level on down – are strapped for cash too. There is enormous pressure for politicians to get the economy back on track, and that has many looking for creative ways to stimulate fiscal growth, reduce the unemployment rates and offset lost tax revenues.

This hasn’t escaped local marijuana businesses looking to expand and entrepreneurs exploring a new launch. Continue reading

marijuana businessArroyo Verde farm, owned by Barry Brand in Carpinteria, was considered a prime example of how a legal cannabis business could flourish under close regulation from Santa Barbara County. Then in January, a sheriff-led raid of the farm found evidence to suggest the farm was not only selling licensed products, but also selling products on the illicit market too.

This came as a surprise to some. Barry Brand had a reputation among county officials and industry investors as an honest businessman.

He was so well trusted by officials, that when a licensed cultivator property tour was given by the county to show reporters just how well cannabis regulations were going, Brand’s farm was chosen. Ironically, the tour intended, among other things, to demonstrate just how impossible it would be for a grower to siphon off crop to sell on the illicit market.

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California’s cannabis industry is sitting on a not-so-well kept secret — that many of its licensed, above board, legal business operators have also traded unlawfully, at some point, and to one extent or another.marijuana business

As many industry insiders have echoed, anyone turning a profit in this new era, has to have at least one hand in unregulated dealings. Chris Coulombre, CEO of Pacific Expeditors in Sonoma, has said “I have to imagine that 60 percent of the market overall is probably playing in a parallel markets, but I don’t think they enjoy that. It’s truly a decision of necessity.”

Whispers of retailers selling counterfeit products are rife. Cultivators are known to sell unregulated product on the side. But how can we blame them? Suffering terribly at the hands of price undercutting from illegal competitors, these unregulated exchanges are all taking place in hopes of keeping doors open, and businesses afloat. Continue reading

Throughout Southern California, marijuana dispensaries are reportedly selling cannabis products that are counterfeit – capitalizing on another firm’s branding, holding out one’s illicit products as legal or both. Law enforcement and marijuana business lawyers in Los Angeles are actively monitoring both fronts.counterfeit cannabis

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) establishes a complex maze of rules and regulations to ensure pot products sold to the public are safe and legal. That means cultivators, manufacturers and dispensaries are vetted and licensed, cannabis goods are tracked seed-to-sale and quality assurance testing is conducted to limit consumers’ exposure to dangerous metals and pesticides.

Despite this, black and gray market marijuana operations in L.A. abound. Continue reading

Marijuana business entrepreneurs are increasingly striking green in the Golden State. If you’re looking to launch a new pot shop or any company ancillary to the cannabis industry: California is a prime location. Our Los Angeles marijuana business attorneys could have told you that, but this comes from a new report by FitSmallBusiness.com, which ranked California the No. 5 best state in the U.S. for cannabis start-ups. marijuana entrepreneur

The study analyzed numerous factors, including how easy it is for a new business owner to enter the market, what it costs to do so, how much you’ll pay in taxes, how many laws and regulations exist and the overall market opportunity.

Oregon wrestled the No. 1 spot, Colorado No. 2, Michigan No. 3 and Alaska No. 4.

The fact that we aren’t first – despite being the biggest legal marijuana market despite being the largest marijuana market – was attributed largely to our patchwork of laws and hefty taxes (15 percent excise and a sales tax for recreational product). There’s also a mid-range startup fee – $5,000 for business applications. Compare that to Oregon where the fee is a cheap $250 but then also to Illinois, where a cultivator licensing fee costs $200,000 – all but ensuring any prospective small business owners would be pushed out.

Still, California secured the most recreational marijuana revenue of any in 2018 – it’s very first year – at $2.75 billion. Continue reading

Almost all California businesses know they’ll need to secure some type of insurance. Unfortunately, as our Los Angeles marijuana business attorneys know full well, companies that deal in cannabis face a host of major hurdles for this essential service. Although the California Insurance Commissioner has approved a handful of insurance carriers to offer insurance coverage to the cannabis industry this year, giving growers and distributors at least some options, there is a good argument to be made that cannabis companies need an insurer tailored to meet the unique needs of the industry – just like they require an attorney who specializes in marijuana law. Los Angeles marijuana lawyers

Although it has become easier this year for cannabis companies to find insurance coverage than ever before, Los Angeles marijuana business attorneys recognize the industry is still very under-served.

Most cannabis insurance primarily focuses on product liability coverage, as explained in a recent article by Insurance Journal. However, there are a number of other potential liabilities too for which cannabis companies likely could use insurance coverage. That’s an opportunity for insurance companies, but of course many are keenly aware of the risk, given federal laws pertaining to money laundering when doing business with any enterprise that derives income from illegal sale of cannabis.  Continue reading

Hundreds of batches of marijuana products may need to be recalled and retested after a California cannabis testing lab surrendered its license following a state inspection reportedly revealed falsification of product testing results over the last four months. Los Angeles marijuana business lawyers recognize this could have substantial impact on statewide supply and industry operations heading into the new year. That’s because come Jan. 1, 2019, a host of additional marijuana testing requirements go into effect, and cannabis oils, flowers and edibles are required to undergo more rigorous testing for certain toxins like heavy metals. This is bad news because bottlenecks at state-authorized testing labs were already beginning to form, slowing the process of getting these products from seed to sale.Los Angeles marijuana business lawyers

The lab in question, Sequoia Analytical Labs in Sacramento, was undergoing a routine inspection late last month when state investigators with the California Bureau of Cannabis Control noted that in testing for 66 pesticides required by law, tests for 22 of those were not correct, thanks to a “faulty instrument.” Furthermore, the bureau reported the lab director was aware the results were erroneous, and not only failed to intervene and take corrective action, but instead falsified lab results to indicate the products were safe when in fact they may not have been.

Safety Concerns for Faulty Testing Prompt Marijuana Business License Forfeiture Continue reading

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