Thanks for tuning in and hopefully this contributes to your understanding of the current market sentiment surrounding the privately held cannabis space now. Please let me know if there are any comments, concerns or any areas you would like to see us expanded upon for future exploration. You can reach out to me on Twitter via @rhum01
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•Is the chain of title in the registrations clear (e.g., were they filed in the correct name and are any transfers clearly documented)?
•Are the registrations vulnerable to attack (e.g., for lack of lawful use)?
•Are any registrations being properly maintained and what maintenance costs are upcoming?
•Have the trademarks been cleared for use through a formal trademark search (not just a quick Google® search)? If not, a formal search should be conducted.
•Has the company been accused of infringement?
•Are there co-existence or settlement agreements that restrict the company’s use of its marks?
•Does the company have any sponsors in place and are appropriate agreements in place?
•Are any trademarks licensed in or licensed out, and if out, is quality control being maintained? Is the license really a franchise agreement?
•Are packaging and labeling compliant with applicable state and federal laws? See for example the NCIA White Paper on "Recommendations for Sensible and Consistent Regulations Across States and Nations."
•Does the target company have advertising injury insurance coverage?
•Are state required packaging and labeling requirements being monitored and complied with, e.g., the Washington State Liquor and Cannabis Board regulations prohibiting the use of cartoons, bubble-type fonts, bright colors, a design or brand name that resembles a non-cannabis product that is marketed to children, symbols and celebrities that are commonly used to market to minors, and images of minors?
•Has the company received any cease and desist letters? Are any of the relevant trademarks or trade dress involved in litigation and in what stage is the litigation? For example, leading water pipe manufacturer Roor International and its distributor Sream have filed numerous lawsuits due to extensive infringement of its ROORTM trademark. The owner of the Gorilla Glue® adhesive required that the name of the cannabis strain Gorilla Glue #4 change it and it was changed to GG4TM. And even more recently UPS, the shipping company owning the logo below on the left sued United Pot Smokers for using the logo on the right in connection with its cannabis product delivery services.