This article originally appeared in Cannabis Business Executive​ on June 10, 2020.

Claimed “illegality” of cannabusinesses continues to be a critical issue for them in their ability to enforce their rights in the courts. The ability to seek judicial relief may be especially important to some cannabusinesses that are struggling as a result of the COVID-19 pandemic (e.g., to seek bankruptcy relief, or to obtain compensation from customers or suppliers that breach contracts). In our December 2019 articles[i], we observed that a cannabusiness may find it difficult to pursue its Intellectual Property (IP) rights in certain jurisdictions where cannabis remains illegal. Here, we provide an update on the “illegality” issue, including outside of the IP arena. We discuss some recent legal rulings in the cannabis space and some potential ramifications to cannabusinesses’ ability to seek bankruptcy and other relief in the courts.

Click here for the full PDF: The Status of a Cannabusiness’ Ability to Seek Relief in the Courts — the ‘Illegality’ Issue

[i] For our prior articles, see Intellectual Property in the Cannabis Industry – Protecting Innovations And Products, Part I (Trade Secrets) and Intellectual Property In The Cannabis Industry – Protecting Innovations And Products, Part II (Patents).

 

 

Photo of Rebecca Edelson Rebecca Edelson

Rebecca (“Bec”) Edelson is a partner in the Intellectual Property and Litigation Practice Groups and leads the firm’s Trade Secrets Team.

Photo of James Fazio James Fazio

James Fazio is special counsel in the Intellectual Property Practice Group in the firm’s San Diego (Del Mar) office.