420 with CNW — Governor Hochul Signs Budget, Lawmakers Exclude Marijuana Smell as Authorization for Police Searches

New York Governor Kathy Hochul signed the state’s latest budget into law on Friday, but one key proposal that had stirred significant backlash didn’t make it into the final version. Earlier this year, Hochul had proposed allowing police to use the smell of cannabis as a reason to suspect a driver of being under the influence and require them to undergo a drug test.

Lawmakers removed the clause after strong opposition from dozens of advocacy groups. In a letter sent to Hochul and state leaders, over 60 reform organizations warned that such a policy would revive harmful tactics from the drug war and open the door to racial profiling by police. Critics argued it would reverse the progress made since cannabis legalization, especially in a state with a troubling history of unequal enforcement.

The proposed change didn’t just face pushback from advocacy groups—it also raised concerns among political leaders, including the state Assembly’s majority leader and the director of the state’s Office of Cannabis Management, Tremaine Wright. Both emphasized that the plan was out of step with the intent of legalization and wouldn’t be effective for New York.

New York has long struggled with racial disparities in drug enforcement. During the 2010s, for instance, Black residents in NYC were arrested for marijuana possession at a rate over nine times higher than white residents.

In terms of other marijuana-related updates in the new budget, there’s a notable change involving the state’s Cannabis Control Board (CCB). The $229,000 annual salary for the board’s chair has been eliminated. Despite the pay cut, current chair Tremaine Wright said she plans to stay in the role. Speaking at an industry event in Albany, she noted that she accepted the position before knowing the compensation and that her commitment wasn’t based on salary.

Wright also clarified that the decision to eliminate the salary wasn’t due to any conflict. She described the evolving nature of the cannabis industry and emphasized that the board, like license holders and applicants, needs to adapt to changes as they come.

A spokesperson for Governor Hochul explained that most state board chairs serve without pay, and this change simply brings the CCB in line with other boards. In addition, the signed bill allocates $5 million to the OCM to hire more enforcement staff, signaling a push to strengthen oversight as the state’s legal cannabis market grows.

The entire marijuana industry around the country, including major firms like Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), will be relieved that the provision allowing police to use cannabis smell as probable cause to subject drivers to searches and drug tests in New York was struck out by lawmakers since it could set an unwelcome precedent for other jurisdictions.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — How Marijuana Descheduling or Rescheduling Would Impact the Industry

The potential shift in how cannabis is classified under federal law is stirring up discussions about the future of the cannabis industry and the possibility of opening up interstate trade. Although many U.S. states have already legalized cannabis for recreational, medical use, or both, it’s still illegal at the federal level, which limits the ability to create a unified national market.

According to Robin Goldstein, head of the Cannabis Economics Group at UC Davis, the direction of the sector is largely dependent on what the federal government does next. Whether cannabis will be reclassified or completely removed from the list of controlled substances remains unclear, leaving many cannabis business owners uncertain about what lies ahead.

Frank Colombo, a managing director at Viridian Capital Advisors, a firm focused on cannabis investments, expressed doubt that marijuana would be removed from the controlled substances list anytime soon. He said he’d be surprised if it happened in the next decade, let alone the next five years.

Industry experts have mixed views on how rescheduling—moving cannabis to a less restrictive category—versus descheduling—removing it entirely—would impact the sector. If cannabis gets moved to Schedule III, it would likely allow marijuana operators to access tax breaks that they currently can’t use due to Section 280E of the IRS code.

However, this wouldn’t necessarily change how marijuana is grown, sold, or transported across state lines. For those things to change, Congress would need to pass additional laws such as the SAFE Banking Act.

Legalizing interstate cannabis commerce would also bring up new questions about taxation. States would need to figure out how to handle products being imported from other regions. At the same time, any expansion into the pharmaceutical side of the market would likely require FDA approval, which is a costly and lengthy process with uncertain returns.

Goldstein points out that even if marijuana-based drugs were approved, most generic cannabis products already on the market couldn’t be patented, making it hard to compete with the profits seen in traditional pharmaceuticals.

If marijuana were completely descheduled, it would likely open the door to interstate commerce, but it could also trigger federal regulations and taxes. This might slow growth and increase costs for operators, giving illegal operators an edge due to their lower prices.

According to Colombo, states with lower cultivation costs, like Oklahoma, California, Washington, and Oregon, could benefit most if national trade becomes legal. On the flip side, companies that invested in indoor grow operations in states with poor outdoor growing conditions could be hurt. State governments, too, might see a drop in tax revenue if local cultivation shrinks.

Industry actors like Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) now have the task of preparing for both scenarios so that if rescheduling or descheduling happens, they are ready for it rather than scrambling to cope once the change has been made.

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420 with CNW — Medical Marijuana Could Reduce Cravings, Boost Addiction Recovery

A recent pilot study by researchers from Thompson Rivers University (TRU) and the University of British Columbia (UBC) Okanagan explored how medically supervised marijuana use might support individuals undergoing treatment for substance use disorders in a residential recovery setting.

The research focused on the experiences of both residents and staff when cannabis was included as part of a recovery plan.

Participants shared that marijuana helped ease symptoms like depression, anxiety, pain, and sleep problems—issues that often make recovery harder. Some also reported fewer cravings for opioids and other addictive substances.

According to Dr. Zach Walsh, a psychology professor involved in the study, these effects suggest that cannabis could help people stick with their recovery programs by making both mental and physical challenges more manageable.

While the findings are encouraging, the researchers noted that stigma remains a big hurdle. Many staff members were skeptical about cannabis as a valid medical tool. Dr. Florriann Fehr, a nursing professor and co-lead on the study, emphasized the importance of educating staff to break down these barriers. “Misinformation and outdated views can prevent cannabis from being used effectively, even when it shows potential,” she added.

The research was carried out at Maverick Supportive Recovery, a live-in recovery facility situated in British Columbia offering structured care for those dealing with substance use. The program creates a stable environment designed to help people recover in a safe and supportive setting.

Although the initial results are positive, the team behind the study says broader research is needed. The authors noted that there is no one-size-fits-all solution, as recovery looks different for everyone, and what works for one person may not work for another. But if cannabis can help someone stay in treatment and manage their symptoms, it’s worth exploring further.

Ultimately, they noted that cannabis is not a replacement for traditional treatments but an additional option that could help certain individuals, especially when used under medical supervision.

To help reduce stigma and share knowledge, events like public forums and professional gatherings are being organized. Dr. Fehr is scheduled to present the study’s findings in June at a global nursing conference in Helsinki. In addition, Thompson Rivers University will host a Medical Cannabis and Recovery forum this April, welcoming the public, healthcare workers, and researchers interested in learning more about this topic.

The study was funded by the British Columbia Ministry of Health and the Interior Universities Research Coalition.

The findings of this small study could suggest to marijuana industry firms like Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) that there is still plenty of room to bring to market innovative cannabis products tailored to the needs of different groups of patients concerned about particular symptoms.

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420 with CNW — Texas Judge Rejects AG’s Request to Block Dallas’ Cannabis Decriminalization

A judge in Texas has ruled that Dallas can continue implementing a voter-approved measure decriminalizing cannabis, rejecting an effort by the state’s attorney general to halt the policy while a lawsuit against it moves forward.

Judge Dale Tillery denied Attorney General Ken Paxton’s request for a temporary injunction. Paxton sought to block the city from moving forward with the reform, which prevents law enforcement from enforcing marijuana-related criminal penalties. The judge’s brief ruling stated that after reviewing the case’s arguments and evidence, the request for an injunction was denied.

The ruling does not dismiss Paxton’s lawsuit, but it allows the city’s decriminalization policy to remain active as legal proceedings continue. Dallas officials placed the decriminalization measure on the ballot last year after activists gathered enough signatures to qualify it for a vote. The law, passed with strong voter support last year, prevents arrests and citations for possession of up to four ounces of cannabis.

Following the decision, Adam Bazaldua, a Dallas City councilmember, expressed his support, emphasizing that the law was backed by more than two-thirds of voters. He criticized the attorney general’s attempt to overturn the decision, arguing that minority communities had historically faced disproportionate enforcement of marijuana laws.

He stated that voters made a rational choice to redirect law enforcement resources toward more pressing issues and applauded the court’s decision to let the law stand.

Ground Game Texas executive director Catina Voellinger praised the ruling as a win for democracy. She argued that the attorney general should not have the power to override the will of the people. According to Voellinger, the measure was designed to align with state laws, and blocking its enforcement would have harmed the community by allowing unnecessary criminalization to continue.

The decision comes a month after the city’s Police Department announced that officers would stop citing or arresting individuals for possession of small amounts of cannabis per the approved measure.

Paxton had quickly moved to challenge the law in court following the November elections, seeking to overturn it. His lawsuit is part of a broader effort to use the legal system to invalidate similar marijuana reforms in multiple Texas cities.

In previous cases, Paxton attempted to block decriminalization measures in San Marcos, Austin, Killeen, Denton, and Elgin. However, judges have dismissed lawsuits in San Marcos and Austin while Elgin officials settled, noting that decriminalization had not been enforced there despite voter approval.

Cannabis industry firms like Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) will be following how this case in Texas evolves later in the year to see whether local ballot measures to decriminalize marijuana possession can spur change at the state level over time.

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420 with CNW — Air Force Personnel in Massachusetts Receive Strong Warning on Cannabis Use

Staff at Massachusetts’ Hanscom Air Force Base have been reminded of the stringent rules governing the use and possession of marijuana products on the base.

A recent memorandum clearly states that individuals are prohibited from using, possessing, distributing, or bringing marijuana onto the base. However, the 66th Air Base Group Legal Office emphasizes that this restriction extends to all personnel, including federal employees, military members, dependents, contractors, and anyone attempting to enter the base. The rule also covers CBD and THC-containing products.

The policy aligns with federal law and the Defense Department (DoD) regulations, which classify cannabis as a restricted substance under the Controlled Substance Act (CSA). While CBD is a non-intoxicating compound that can be derived from hemp—a plant legally recognized federally—some CBD products contain trace amounts of THC, making them subject to the ban.

The statement explicitly includes hemp-based products in the prohibition, banning the use, possession, or distribution of any substances derived from hemp.

The Uniform Code of Military Justice (UCMJ) strictly prohibits the wrongful possession and use of controlled substances. Under Article 112A, this includes a range of drugs such as cocaine, heroin, methamphetamine, LSD, and cannabis, among others. Notably, no legal distinction is made between hemp and cannabis, despite federal law defining hemp as marijuana containing no more than 0.3% THC concentrate by dry weight.

Regardless of the legal debate over CBD, those who violate these regulations can face serious consequences under military law. Federal employees may be subject to disciplinary measures outlined in Department of the Air Force Instruction 36-148, which covers actions against civilian personnel. Additionally, federal workers, military personnel, and DoD contractors could be banned from the base or lose their security clearance.

Another factor that could jeopardize security clearance is direct financial involvement in the cannabis industry. The legal office warns that knowingly investing in businesses or stocks related to cannabis cultivation and retail could have negative repercussions.

Despite the strict restrictions, the policy does not extend to hemp-based durable goods such as clothing, which remain permissible.

The ban also applies to Fourth Cliff Annex, FamCamp, Patriot Golf Course, and Sagamore Hill.

The DoD has continuously reaffirmed its opposition to service members and related people using cannabis. Even seemingly innocuous items, such as hemp-based cereal or CBD-infused hand sanitizer, could endanger military readiness, the Air Force said in 2022.

The cannabis industry, including enterprises like Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), looks forward to a time when federal drug laws will evolve so that even service members who need marijuana products, such as medical marijuana, can access them without risking their jobs.

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420 with CNW — State Report Shows Oregon Has a Marijuana Oversupply

Oregon’s recreational cannabis market continues to struggle with an oversupply issue, causing consumer prices to drop to record lows while businesses face shrinking profit margins. This challenge, outlined in a recent Oregon Liquor and Cannabis Commission (OLCC) report, has made it increasingly difficult for many operators to stay afloat.

The report states that in 2024, Oregon’s marijuana harvest reached nearly 12.3 million pounds, reflecting a 4% rise from 2021. Favorable growing conditions in southern Oregon contributed to this increase. However, demand only accounted for 57% of the available supply, creating an imbalance in the market.

The report highlights the difficulty of managing the oversupply, particularly since Oregon’s market is confined within state borders due to federal restrictions on cannabis commerce. As a result, businesses operate in an intensely competitive space where prices remain low for consumers, but profitability is increasingly challenging. The report warns that without federal legalization, this trend is unlikely to change, leaving the industry to grapple with narrow profit margins.

State legislators have attempted to address the issue through licensing regulations. When state voters legalized recreational cannabis in 2016, Oregon introduced an open licensing model with comparatively low fees.

To prevent excessive supply, legislators implemented a moratorium on new grower licenses in 2019 through SB 218. In 2022, HB 4016 adjusted this restriction, backdating the moratorium to permit new producers into the market. More recently, in 2024, HB 4121 transitioned the moratorium into a per capita licensing model.

Despite these efforts, the OLCC anticipates that the current trend of oversupply will persist, further driving down prices and tightening business margins. Market consolidation may follow as smaller operators struggle to compete.

The financial strain is evident in declining prices. The median cost per gram of marijuana dropped to $3.85 in 2023 and further decreased to $3.75 in 2024, reaching the lowest levels since 2016. The industry experienced its peak sales during the COVID-19 pandemic, with revenues hitting $1.2 billion. However, sales have since declined, stabilizing at $964 million last year.

Beau Whitney, an economist specializing in marijuana markets, believes the OLCC could take more decisive action to regulate supply. He argues that while regulators focus on public health, they neglect the financial sustainability of the businesses they oversee. This imbalance has led to increased business closures and an oversaturated market that cannot sustain all its participants.

According to Whitney, the average Oregon marijuana retailer generates approximately $1.1 million annually, a figure far below the $2.5 to $2.9 million needed for long-term sustainability. He suggests that requiring suppliers to demonstrate demand for at least 75% to 80% of their product—an approach used in other states—could help stabilize the market.

Whitney also points to declining consumer demand as a major factor. He attributes this trend partly to falling prices, which reduce revenue, and to the distribution model, which relies solely on dispensaries. He argues that this model limits consumer participation, as many potential buyers avoid dispensaries altogether. Expanding distribution options, he says, could improve legal market participation and help businesses remain viable.

Without significant intervention at both federal and state levels, Whitney predicts little growth this year. While national sales may grow as more states legalize recreational cannabis, the overall industry remains fragile. He warns that ongoing inaction could cause the U.S. to lose its leadership position in the global cannabis market—a shift he believes could have been prevented with better regulation.

Looking ahead, Whitney advocates for a comprehensive overhaul of industry regulations, calling for a “marijuana regulatory 2.0” to create a more sustainable and balanced market. The oversupply challenge affects most markets in which marijuana has been legalized and it would help all concerned, including leading enterprises like Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), if a lasting solution to controlling marijuana production is implemented.

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420 with CNW — Oklahoma Lawmakers Table Two Bills to Regulate Medical Cannabis

With the Oklahoma legislative session just a month away, state legislators have proposed two measures to regulate medical cannabis. One bill aims to regulate how much a person can purchase in a week, while the other one focuses on regulating how cannabis dispensaries in the state can advertise their products.

Likewise Cannabis founder Corbin Wyatt shared his thoughts on the significance of medical cannabis for numerous individuals, noting that many patients state that they have been able to quit using strong medications, such as fentanyl, over time. “Their lives have been changed by marijuana,” Wyatt added.

Senate Bill 320, presented by State Senator George Burns, would regulate the weekly amount of medical marijuana that can be purchased by an individual to 2.5 ounces. The bill, filed exactly one month before the session starts, is stirring conversations within the industry, Wyatt noted. Wyatt pointed out that most of the patients rely on being able to buy three ounces of marijuana flower to meet their medicinal requirements.

Right now, licensed patients in Oklahoma are allowed to possess up to three ounces of medical marijuana. However, Senate Bill 320 would lower the weekly maximum amount that a person might purchase if it were to become law. Wyatt voiced doubts about the bill’s efficacy, speculating that it might not succeed in keeping cannabis out of the illegal market. “Imposing what looks like a spurious purchase limit is not the best way to address that issue,” Wyatt stated.

The other measure, also filed this week, Senate Bill 191, sponsored by State Senator Dusty Deevers, takes aim at medical cannabis advertising. The proposed legislation seeks to ban advertisements that claim cannabis is completely harmless or safe. It also includes provisions restricting specific types of advertising by dispensaries.

Wyatt weighed in on the measure as well, referencing certain advertising methods. “Things like flashing signs, flags, banners, or those inflatable tube men,” he explained. Although the bill doesn’t explicitly mention tube men, it does contain language prohibiting any advertising designed to appeal to children or individuals under the age of 18.

Wyatt emphasized the need for better education about medical cannabis. “Instead of focusing on these restrictions, we should teach people what cannabis truly is, when it’s appropriate to use it, and when it’s not,” he said.

The next legislative session is scheduled to begin on February 3. The broader cannabis industry, including entities like Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), will be hoping that the regulatory framework for the medical cannabis market in Oklahoma is completed in time and the launch of sales is successful so that patients who need these treatments can start legally accessing the products.

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420 with CNW — Federal Appeals Court Doubtful of Prospects for Suit Challenging Marijuana Ban

A United States appeals court seemed inclined to reject claims made by several marijuana businesses in Massachusetts, which argued that federal laws prohibiting cannabis are no longer constitutional.

The businesses, represented by prominent attorney David Boies, contend that significant changes since the Supreme Court upheld federal marijuana laws in 2005 make the prohibition outdated. Currently, 38 states have legalized medical or recreational cannabis. Boies argued that Congress’s original intent to eliminate cannabis nationwide has shifted, citing legislation and policy changes that reflect a more lenient approach.

Despite his arguments, the judges appeared skeptical. Judge Julie Rikelman, appointed by President Joe Biden, emphasized that Congress still aims to regulate controlled substances, including cannabis, to manage both legal and illegal markets. “That has not changed,” she noted, suggesting that federal regulation remains a valid objective.

The lawsuit, initiated last year, involves Massachusetts-based Canna Provisions, a cannabis retailer; Gyasi Sellers, who operates a cannabis delivery service; Wiseacre Farm, a grower; and Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), a publicly traded multistate cannabis company. In July, Judge Mark Mastroianni, appointed by former President Barack Obama, dismissed their case, stating that only the Supreme Court could overturn its 2005 ruling.

In the 2005 ruling, the court held that Congress has the authority under the Commerce Clause to criminalize cannabis possession and use, even in states that legalize it for medical use under the CSA.

The plaintiffs argue that the 2005 rationale has been undermined by subsequent legal and policy developments. They cited a 2021 statement by Justice Clarence Thomas in which he questioned whether the reasoning behind the decision still holds.

Boies also highlighted congressional actions that reflect a changing approach to cannabis. In 2014, Congress prohibited the Justice Department from using federal funds to interfere with state medical cannabis programs. Additionally, in 2010, Congress allowed the use of medical cannabis in Washington, D.C. More recently, the DOJ moved to reclassify cannabis as a Schedule 3 substance, a less severe category than its current Schedule 1 status. A hearing on this potential reclassification is set for January 2025.

Despite these changes, Judge David Barron, another Obama appointee, expressed doubt that these legislative carve-outs indicate a complete shift in federal policy. He questioned how these isolated measures prove that the federal government has abandoned its stance, especially when the overarching prohibition on cannabis sales remains in effect.

This case, Canna Provisions Inc. vs. Garland, continues to highlight the tension between state-level legalization and federal prohibition, a conflict that has yet to be resolved.

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420 with CNW — New Report Says Millennials Lead Other Generations in Buying Marijuana Pre-Rolls

Millennials, the largest generational group in the U.S., are shaping spending habits across industries, including marijuana. According to a recent survey, this age group, ranging from 28 to 43 years old, has become a dominant force in the joint market, making up 45% of the $3 billion industry.

Harrison Bard, the CEO and co-founder of Custom Cones U.S., noted that millennials occupy a unique position. “They have more disposable income and greater freedom compared to younger generations,” Bard explained, adding that the generation grew up during a time when cannabis was becoming more normalized.

The study, conducted by Custom Cones U.S. in collaboration with the marijuana analytics company Headset, involved survey data from over 900 marijuana users across the country. It provided detailed insights into purchasing habits and preferences within the pre-roll market.

Headset’s analysis revealed that the average price of a pre-roll is $6.44 for a gram—a figure that has steadily declined over recent years, dropping from $8.13 in Sep. 2022.

Millennials remain the dominant spenders on pre-rolls at $103.9 million, making up 44.6% of total expenditures. Generation X accounts for $56.7 million (24.3%), Gen Z at $43.2 million (18.5%), while baby Boomers spend about $29.2 million, or 12.5%.

While vape pens are favored by Gen Z, they are less popular among older buyers who often opt for edibles. Pre-rolls, however, appear to transcend these generational divides. For users purchasing flower, rolling it remains the most popular way to consume it. Other methods include using a vaporizer, bong, or bowl.

The pre-roll market has seen remarkable growth, with 82% of users purchasing them and sales increasing by over 450% in the past five years. Retailers report that full-size, 1-gram pre-rolls outsell smaller, half-gram options typically sold in multipacks. Bard suggests that these larger pre-rolls are often bought for immediate use. “People seem to pick up a pre-roll along with their main purchase to enjoy right away,” he said.

The study also explored the disconnect between what marijuana businesses assume consumers want and what buyers prioritize. While businesses often view price as the primary factor, consumers tend to focus on potency. This preference explains the growing popularity of infused joints, known for their higher THC content.

Over the last two years, California-based Jeeter has led the market, accounting for 8.8% of pre-roll sales and generating $504.2 million in revenue. Other top brands include Stiizy, with $320.9 million in sales from over 43.4 million joints, and Dogwalkers, which pioneered mini pre-rolls, achieving $141.6 million in sales with 6.1 million units.

While men are responsible for the majority of the purchases across all generations, this does not necessarily mean they are the sole consumers. Bard suggests that men often take on the role of purchasing marijuana on behalf of households, even though women typically make the majority of everyday purchasing decisions.

These findings could give industry actors like Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) valuable insights to consider when planning how to deepen their reach within the markets in which they operate.

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420 with CNW — Why Cannabis Firms Need to Give Branding Adequate Attention

A troubling tendency has surfaced in states where marijuana markets are regulated: businesses frequently offer their goods using identical or very similar trademarks. This overlap occurs because the United States Patent and Trademark Office (USPTO) prohibits federal trademark safeguarding for cannabis products, as they are illegal at the federal level.

In the absence of federal trademark safeguards, marijuana businesses are left with little choice if they want to prevent others from using identical brand names or logos in different states.

This situation has created a unique issue in the sector where customers question if a product is from Company A or Company B when packaging or branding looks nearly identical. As more states implement regulated markets, new brands arise, raising the possibility of consumer confusion and underscoring the importance of unique trademarks.

Typically, marijuana businesses select a name or logo for their product, assuming it’s unique and unused by others, often without conducting a thorough search. Regrettably, this presumption may result in expensive legal disputes. Many marijuana business owners have encountered challenges over the years after discovering that their “unique” terminology, such as Dank, Emerald, Elevated, Canna, or 420, were already commonly used or connected to cannabis culture.

Businesses in the cannabis industry must therefore negotiate a challenging environment where trademark conflicts are inevitable until laws at the federal level change and the USPTO approves trademarks for marijuana products.

Once this happens, the shift will be both advantageous and difficult. The market will become more competitive as a result of the opening of the floodgates for new trademark applications, even though businesses will now have recourse to federal courts for trademark safeguarding.

In the interim, cannabis businesses should look at alternative brand protection strategies. Federally, trademarks are accessible for goods and services that do not directly involve the cannabis plant, such as select hemp-based goods, websites, smoking accessories, retail services, and non-infused products.

Cannabis companies can pursue trademark safeguarding in states where cannabis is regulated for their in-state offerings, like retail services, edibles, or flowers. However, these protections are limited to the state of registration, unlike federal trademarks, which cover the entire U.S., creating issues for companies that operate across state lines.

To further safeguard their brand, companies should consider other forms of intellectual property protection, such as patents, copyrights, or trade secrets.

One common misconception is that if a company hasn’t faced a trademark lawsuit yet, it won’t face one in the future. However, as the industry grows, litigation around trademark issues is expected to rise, with larger companies often leveraging their resources to protect their trademarks. When enforcement happens, smaller businesses may face the difficult choice between rebranding or engaging in a legal fight.

Many companies want the trademark to represent their product, but a more effective trademark reflects the company’s unique character, values, and purpose. A unique trademark enhances a brand’s long-term standing and helps it stand out in the marketplace.

It is also easier to defend, which makes it more difficult for rivals to violate the brand and guarantees greater recognition and protection.

With the proposed reclassification of cannabis to Schedule III and the evolving legal status of cannabinoids, more entrepreneurs are likely to enter the market, leading to a wave of new brands. In this dynamic landscape, a robust trademark is not just a logo—it protects a company’s identity. Starting early on trademark safeguarding can mean the difference between a smooth path to growth and facing costly legal obstacles.

For established companies like Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), protecting their brand identity is paramount since these entities have worked hard to get to where they currently are.

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