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Cannabis and Intellectual Property

HOW TO BUILD, REGISTER, LICENSE, AND PROTECT YOUR BRAND

TRAVIS COPEN H AVER | C AN N ABIS LEGAL GR OUP

What is a Brand?

• A“brand”istraditionallyconsideredasetofuniqueidentifyingmaterials thatdifferentiateonefromitscompetitors.

• It’sthenameofyourcompany,yourlogo,andyourfootprintintheindustry.

• Yourbrandistypicallyassociatedwithalevelofqualityorcredibility andbecomesarepresentationofyourreputationandidentityinamarketplace.

• Brandingcanbebroad,suchasanoverallcorporateidentity,ornarrow,suchastailoredaspecificproduct.

• Communicationsinanyformcanhaveanimpactoncustomers’perceptions

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Thinkdifferent®

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Why should you develop your brand?• Distinguishyourproductsandservices• Simplifyconsumerdecisions• Simplifyproducthandling• Protectunique features• Brandloyalty• Brandreputation• MarketingandAdvertising• Professionalism

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What is Intellectual Property?Intangibleproperty,creationsofthemind

Creativeworksandinventionswhichexistinaformthatcanbeshared,recreated,emulated,ormanufactured

TypesofIP:• Patents• Copyrights• Trademarks• TradeDress• TradeSecrets

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Intellectual Property Rights for Goods

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How do Brands & Intellectual Property overlap?

Focusonthe“Property”• IntellectualProperty involvesownership• Something youownthatyoucanpossess,use,enjoy,ordisposeof• Youcanpreventothersfrompossessing, using,enjoying, ordisposing

Yourbrandwillinvolveacollectionofmaterialsandconcepts• Someofthesekeymaterialscan(andshould)beprotected• Somematerialsyoumightwanttoprotectwillnotqualify forprotectionduetothelimitationsofIP

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Patents•Propertyrightsgrantedtoaninventortoexcludeothersfromusing,making,orsellinganinvention

•Amonopolyoveraninvention

•Onlynew,specific,non-obviousinventionswillqualify

Utility Patents• Inventionsinvolvingmachines,processes,methods,andcompositions• Anythingmanufacturedthathasausefulandspecificfunction• AccordingtotheUnitedStatesPatentandTrademarkOffice(USPTO),90%ofpatentsareutilitypatents

Design Patents• Inventionsinvolvingaestheticappearance,design,shape,orgeneralornamentation

• Thisprotectsonlytheappearanceofanarticle,butnotitsstructuralorfunctionalfeatures

Plant Patent

• Protectsthediscoveryorinventionofplantsthatareasexually reproduced

• Hybrids(notcountingthe1st generation),mutants,sports,andotherplantvarietiescanhaveplantpatents

• Designed topreventothersfromgrowingandsellingplantsorseeds

• TherearecurrentlyseveralplantpatentspendingbeforetheUSPTOforcannabisrelated inventions

• PatentNo.6,630,507:Cannabinoidshavebeenfoundtohaveantioxidantproperties,unrelatedtoNMDAreceptorantagonism.(OwnedbytheU.S.Government)

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TrademarksAnyword,symbol,image,slogan,orotherobservablefeatureusedtoidentifythesourceofagoodorservice

Brandingmaterialsusedspecificallytolabelandidentifyproductsorofferings

Keyconcepts• Themark• Useincommerce• Connection totheproductorservice• Sourceidentification

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CopyrightsOriginalworksofauthorshipfixedtoatangiblemedium

Creatingsomethingandreducingdown• Books,songs,movies,photographs• Websites• SOP’s

TheRighttoCopy• Theright toreproduceandcreatederivativeworks• Forexample,changing thecolororbackgroundofalogo• Modifying something forspecificuses

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Trade SecretsAnysecretinformationthatacompanydeemsofvalue

Secretformulas◦ Coca-cola®receipe◦ KFCTMsecretblendof11herbsandspices

Customerlists

Nutrientrecipes

Secretscanbeprotectionforever,solongastheinformationdoesnotbecomepublic

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Using IP Protection to Protect your Brand• Identifykeymaterialso Companynameo Productnameso Logoo SlogansoWebsitelayouto Advertisementso Createddocuments

• Identifyavailableprotections

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Trademark ProtectionAtrademarkcannotexistifitisnottiedtoaspecificgoodorservice• IdentifytheMark• IdentifytheProductorService

Examples:• McDonald’s® referstoalineoffastfood restaurants• Apple® referstocomputers,phones, andretailstores• Nike®referstoshoesandapparelproducts

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Different Levels of Trademark ProtectionCommonLawTrademarks• Protectionthrough usealone◦ Limitedtoactualuseandgeographicallocations

StateRegisteredTrademarks• Establishesadditionalprotections◦ Limitedtoastate’sborders

FederallyRegisteredTrademarks• Thehighest leveloftrademarkprotection• Protectioninall50statesandU.S.Territories

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Benefits of Federal Trademark Registration• Legalpresumption thatownerofthemark• Legalpresumption ofrighttousethemark• Putspubliconnoticeofownershipofthemark• MarkislistedintheUSPTOdatabase• RegistrationcanberecordedwithU.S.Customsand• BorderProtection toblockcounterfeiting fromentering.• Righttobring legalactionconcerningmarkinfederalcourt• Useregistrationasabasisforforeignfiling• Abletousethefederalregistrationsymbol:®

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Trademark Challenges for the Medical Marihuana Industry• Trademarkregistrationisafederalprotection, sotheUSPTOwillnot registermarksthatdescribegoodsorservicesthatviolatetheControlledSubstancesAct.

• Thisincludesanyproductorservicethatinvolvesmanufacturing, distributing, dispensing, orpossessingmarihuanaormarihuana-basedpreparations.

• TheUSPTOwillnotregisteranymarkthatinvolves“drugparaphernalia”oranyequipment, product, ormaterialofanykindwhichisprimarily intendedordesigned foruseinmanufacturing, compounding,converting, concealing,producing, processing,preparing, injecting, ingesting, inhaling, orotherwiseintroducingmarihuanaintothehumanbody.

• Notonlyareactualmarihuanaproductsprohibited, anyancillarytools,equipment, orservicesdirectlyinvolvingmarihuanawillnotqualify forregistration.

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State Trademark OptionsFEDERALTRADEMARKS

• FilingscannotviolatetheControlledSubstancesAct(Oranylaw)

• ComprehensiveExamination

•Nationwideprotection

•OptionsforCustomandBoarderPatrolorForeignTrademarkRights

• Federalreviewfor“confusinglysimilarmarks”

• Legalpresumptionsincourt

• Accesstothefederalcourtsystem

• Potentialforadditionaldamages

• Potentialforattorneyfees

• Potentialforstatutorydamages

STATETRADEMARKS

•Medicalmarihuanaislegalunderstatelawandqualifies formarkregistration

• Examinationprocessisnotverythorough

•Protectionlimitedtothestate

•Rightsarenotasrobustasfederalmarks,noraretheylitigatedasofteninthestatecourtsystems

•Accessto,andadditional rightsinthestateyouhaveregistered

•Mustregisteronastatebystatebasis

•Musthaveactualuseinthestatetofile

•Goodoption formarijuanabusinesses, pooroptionformostotherindustries

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Other Federal OptionsEstablishIndirectProtection• Thinkaboutyourbrandasmorethanmarijuana• Whatotherproductsorservicesdoyouprovide?

QualifyingGoodsandServices• Apparel• Merchandise• Informationalwebsites– blogs,educationalmaterials,advocacy• Getcreative

Example:• HighTimes®- magazinesandbooksaboutcannabis

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Examples of Federally Registered Cannabis

Trademarks

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Bay Area Green Cross Dispensary, LLCOwner:BayAreaGreenCrossDispensary,Inc.

Service:Providingawebsitefeaturingmedicalcannabisresources,namely,providingonlinemedicalinformationpertainingtomedicinalcannabis

Registered:April28,2015

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Om of MedicineOwner:OmofMedicine(AnnArbor,MIDispensary)

Educationservices:providingon-lineresearcharticlesandresourcesinthefieldofmedicalmarijuana

Registered:February10,2015

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Loud Amerika, LLCOwner:LoudAmerika,LLC

Products:T-shirts

Registered:April4,2017

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420 Unlimited, LLCOwner:420Unlimited,LLC

Products:apparel,includingHoodies;Jerseys;Shirts;Sweatpants;Sweatshirts;T-shirts;andheadwear

Registered:September26,2017

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Brickley Media, LLCOwner:Brickley Media,LLC

Service:On-linejournals,namely,blogsfeaturingfoodanddiscussinggourmetedibles

Registered:September5,2017