Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, we see that the DEA’s rescheduling hearing is still pending. Germany’s cannabis program is likely to remain in place. Rhode Island has finalized its marijuana regulations. And finally, Hostess is looking to expand its market to cannabis consumers.

Continue Reading The Week in Weed: April 18, 2025

Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, we see Delaware dealing with a delay in setting up a retail market. A move to put a legalization initiative on the ballot in Oklahoma has begun. Federal re-scheduling seems unlikely to happen. And finally, at least one restaurant is gearing up for 4/20.

Continue Reading The Week in Weed: April 11, 2025

Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, New Hampshire makes another attempt to legalize adult-use cannabis. Minnesota works on rules for its cannabis industry. Meanwhile, on the federal level, the administration’s drug czar makes complimentary remarks about medical marijuana. And finally, as Passover approaches, you can stock up on kosher for Passover THC gummies.

Continue Reading The Week in Weed: March 4, 2025

Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, legislation that would ban intoxicating hemp is moving through the Texas legislature. We applaud the state of Tennessee for the name they’ve given a legalization bill. We report on the least shocking cannabis news of 2025. And finally, we see a well-known company break into the edibles market.

Continue Reading The Week in Weed: March 28, 2025

Welcome back to the Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, we see legalization bills introduced in Kansas. Virginia is looking at losing a lot of money by not setting up a retail market. Young people are switching from alcohol to cannabis. And finally, we have a story about Pi Day.

Continue Reading The Week in Weed: March 21, 2025

On October 29, 2024, the Second District Court of Appeals of California decided against the County of Santa Barbara (“the county”) in JCCRandall LLC v. County of Santa Barbara. The Court held, contrary to popular belief, that marijuana is still illegal in California because it is illegal federally. Thus, the Court sided with a private landowner (“plaintiff”) who objected to the county issuing a conditional use permit (“CUP”) for the cultivation of cannabis on the plaintiff’s land without their consent, despite a pre-existing easement.

Continue Reading Cultivator Not Entitled to Use Easement for Cannabis Purposes Absent Landowner Consent

Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, we see Idaho considering limits on ballot initiatives. Kentucky approves hemp beverages. Canada is happy they legalized cannabis. And finally, Mindy Kaling talks about a star on the Hollywood Walk of Fame.

Continue Reading The Week in Weed: March 14, 2025

Last year, the case of BBK Tobacco & Foods LLP v. Central Agriculture Inc. made headlines in the trademark world when the Ninth Circuit held that district courts have jurisdiction to alter or cancel trademark applications.  97 F.4th 668 (9th Cir. 2024). 

Once again, the case is shaking up the trademark space.  In what appears to be a matter of first impression, the United States District Court for the District of Arizona held that, in a trademark infringement case, an infringer could be subject to profit disgorgement despite the fact that its profits arose from federally illegal sales of cannabis.  BBK Tobacco & Foods LLP v. Cent. Coast Agric. Inc., No. CV-19-05216-PHX-MTL (D. Ariz. Feb 28, 2025). 

The case could have a significant impact for trademark owners and those operating in the cannabis space. 

BBK Tobacco & Foods LLP (“BBK”) offers smoking-related products, including rolling papers, under its RAW trademark.  BBK alleged that Central Coast Agriculture Incorporated (“CCA”) was infringing on its trademark by offering cannabis products under the RAW GARDEN mark.  CCA markets and sells cannabis products under the RAW GARDEN brand exclusively through California-licensed dispensaries and mobile delivery services.  CCA’s sales are legal within the state of California.  But the Controlled Substances Act makes it unlawful to distribute cannabis at the federal level. 

Both parties filed motions for summary judgment on several grounds.  In particular, CCA moved for summary judgment on BBK’s profit disgorgement claim.  Profit disgorgement requires a party that profits from its own illegal acts against an opposing party to give up profits made as a result of such acts. 

The court acknowledged CCA’s concession that no court has addressed the issue of profit disgorgement specifically in the context of trademark infringement. 

BBK argued that allowing CCA to be immune from a profit disgorgement claim would incentivize the violation of federal criminal law.  On the other hand, CCA argued that awarding damages from profits earned from the sale of cannabis would violate federal law. 

CCA relied on several cases where courts have found against awarding damages from profits earned on businesses that process and sell cannabis.  See e.g., J. Lily, LLC. Clearspan Fabric Structures Int’l, Inc. No. 3:18-cv-01104-HZ, 2020 WL 1855190, at *12 (D. Or. Apr. 13, 2020) and Wildflower Brands Inc. v. Camacho, No. 2:22-CV-09044-MCS-PLA, 2023 WL 3150091, at *2 (C.D. Cal. Mar. 20, 2023) (an award of profit disgorgement concerning cannabis business would “run afoul of federal law.”) 

The court distinguished the cases cited by CCA because both parties were engaged in the federally illegal cannabis industry.  So, an award of profit disgorgement would benefit a party violating federal law. 

Here, only CCA operates in the cannabis industry.  The court stated that allowing CCA to be immune from a profit disgorgement claim would incentive, not discourage, the violation of federal law.

Therefore, the court denied CCA’s motion for summary judgment and held that, if a jury finds that CCA infringed BBK’s trademark, BBK may seek profit disgorgement. 

Cannabis companies attempting to use the federal illegality of cannabis sales to their benefit in litigation is not new.  Previous attempts to dismiss cases based on the illegality doctrine (i.e., courts should not be used to engage in unlawful conduct) were rejected.  This is something we’ve previously discussed.  See e.g., California Ruling May Sow Seeds of Cannabis Patent Precedent.

This case takes things one step further.  Not only may cannabis companies be subject to claims in federal court, but they may also be required to disgorge their profits or pay damages in trademark infringement cases based on activity that is illegal under federal law.  It’s unclear whether the same may be true regarding other forms of intellectual property infringement claims.  But based on this court’s reasoning, if profit disgorgement does not benefit a cannabis company, the same outcome may apply. 

Moreover, brand owners outside of the cannabis space should be cognizant of the potential to recover damages from a cannabis company infringing its trademark rights.

As the legal proceedings continue, the outcome of this case could have significant implications for trademark law and the cannabis industry.  But at this point, CCA may consider that the court provided it a RAW deal. 

Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, Ohio legislators are working on a bill that would make major changes to the state’s marijuana laws. The District of Columbia is cracking down on illegal retail outlets. Dallas’ decriminalization law stands. And finally, Oscar attendees found some cannabis items in their gift bags.

Continue Reading The Week in Weed: March 7, 2025

Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, we check in on Wisconsin, where the governor supports legalization. We have some news on DEA rescheduling. The new administration has appointed a pardon czar. And finally, if you like your magic acts with a side of cannabis, check out the weed magician.

Continue Reading The Week in Weed: February 28, 2025