Jesse, Coleman & Russell speak to Nathan about the Hempliance App and program.
Built-in blockchain, Hempliance tracks EVERYTHING, including lab test results, buyer/seller information and the GPS location of each event in the growing cycle. The documents create a Certificate of Analysis (COA) that we can share electronically to meet compliance requirements, allowing you to sell for a higher price. The single HIPAA compliant cloud database deployed across all platforms ensures the security and integrity of the data given to all parties to protect you and your crop. We have spent the last year working with an FDIC bank for regulatory compliance in the hemp market. Our automated invoices are emailed to all parties, including the bank, so there is full transparency on the test results and other aspects of the transaction, getting your profits faster.
HEMPLIANCE: The secure hemp blockchain software system offering COMPLIANCE – TRANSPARENCY – ACCOUNTABILITY We’re innovators, farmers, data scientists, software engineers, agricultural Ph.D.s, and politicians that developed a revolutionary way to transfer data in the easiest way possible in the new hemp market.
With COVID vaccinations in full swing, hempsters of Texas among many others across the US, attended NOCO Hemp Expo in Denver, CO
The 3-day event kicked off on March 25 with an investor forum held at the Renaissance Denver Central Park Hotel. The event was primarily hosted by virtual hosts, including individuals such as Dr. Ethan Russo and Dr. Bonni Goldstein speaking on neurological development in neurodivergent youth, to Frank Robison of the Robison Law Group speaking on imp0lications of recent rules changes and possible future changes.
That evening saw multitudes of Texans gathering at the presidential suite of the hotel to have a meet and greet with one another. People from across Texas working in various fields of the hemp industry got to meet with one another face to face. Some for the very first time, others a year or longer reunion in the works. Texans were able to network and get the much-needed social interaction the industry needs at this moment.
Friday saw the Expo hosting its business conference at the National Western Complex on the North Central side of Denver. Along with the Business conference being in-person and virtual, the complex also hosted an in-person walk-through expo. The event was set up in a fashion similar to walking through an IKEA location, with a path labeled to keep foot traffic flowing primarily in one direction. Speakers for the conference included notable figures such as Colorado Governor Jared Polis and Asa Waldstein Founder & Principal of Supplement Advisory Group.
Saturday the 27th marked the day for the Farm Symposium. The symposium started the day off with a Welcome to NOCO Let’s Talk Hemp Farm Symposium featuring Texas’ very own Trammell S. Crow. From his speaker page, “As the founder of EarthX (formerly known as Earth Day Texas), Mr. Crow has created the largest annual exposition and forum showcasing the latest initiatives, discoveries, research, innovations, policies and corporate practices serving to re-shape a more sustainable future. With a focus on inspiring environmental leadership across sectors and party lines, Crow serves on the board of directors for ConservAmerica and is a co-founder of Texas Business for Clean Air and Texans for Clean Water. “
Shortly after attendees got to hear from Texas Commissioner of Agriculture Sid Miller and internationally renowned cannabis attorney Bob Hoban of the Hoban Law Group about how states are working with farmers and producers, and how they are integrating rules and policies with the USDA and federal government to promote hemp production as allowed under the 2014 and 2018 federal Farm Bills.
Sid Miller spoke on various topics as to Texas being one of the latter states to join, growing his own hemp crop in 2020, the dilemma farmers face in Texas and why Texas is not requiring certified seed yet.
Speaking on certified seed Sid Miller stated that the reason “was to protect the farmers from issues.” As an individual that promotes limited government in the farm space, he wanted to create minimal extra rules unless necessary to make sure Texas farmers can succeed. Sid described in detail that it concerned him how a Texas farmer may buy a certified seed from another state with given expectations that are not met, resulting in hot crop and farmers out of pockets thousands if not possibly millions of dollars with no legal recourse.
Farmers such as those in West Texas areas such as Lamesa face the issue of not having anywhere they can offload their crop and immediately receive funding for it. Farmers in the area are used to growing cotton, harvesting it and taking it to a local delinting facility. A facility where they can offload and immediately receive a check for the product. As well, farmers face challenges such as getting banking, obtaining crop insurance that covers them well enough, and even enough water to ensure the plant’s survival.
Several prominent smokable hemp producers argued in court on March, 22nd that the state’s smokable hemp production and retail ban were unlawful.
Previously, DSHS equated the ban on the manufacture of smokable hemp products in HB 1325 to a ban on the sale. He asserted it was the intent of that bill. Eldred implied that HB 1325 grants this and DSHS is only making it explicitly known.
In opening statements the plaintiffs argument was led by Matt Zorn. The state claimed that regulating hemp this way is that it is related to enforcing marijuana laws. Zorn compared this to the state saying that if it needs to focus on enforcing cocaine laws, to which it then tries to ban baking soda use. It wouldn’t make any sense to do so.
Zorn stated that Hemp is an entirely legal good. That the state has created a regulation and law on a legal good with no rational basis for doing so. Noting it is an oppressive burden to the market and businesses, comparing this to the oppressive burden noted in the TX SCOTUS case Patel v. Dep’t of Licensing & Regulation which found that the training required for eyebrow threading was an irrational oppressive burden for the occupation. Zorn leads that the court needs to find if the interest of the government outweighs the oppressive burden created.
Zorn reiterated that enforcement of marijuana laws is the issue at hand and DSHS states that it is also about cops not being able to immediately know the difference between hemp and marijuana. From there he elaborated that if that is the goal, then it would mean that reducing the prevalence of people smoking would have to be what takes place for that goal to be reached. This enforcement however will not reduce the prevalence as officers do not know the difference at face value. The fact people can make this on their own and smoke in public keeps that prevalence from being reduced.
Charles K, Eldred, representing DSHS and the State of Texas, started his argument by noting the marijuana and hemp are the same plants, Cannabis Sativa L. That the legislature passed a law for hemp to e regulated which is cannabis Sativa l. So it has a job to regulate the two as the same while following the definition of hemp as described by federal law, scheduling, and Texas law.
Livingston asked Eldred to describe what the change was from before Texas passed its own hemp law via the 86th legislature.
Eldred further stated that in the ’70s hemp and marijuana were just called marijuana, but that today the two are separate because of the psychoactive response upon ingestion and are not separable using other senses. The ban focuses on how hemp isn’t distinguishable from marijuana. Now, hemp is considered legal but given the change in technology, we can tell the difference quicker. He also pointed out that there had been a long-time ban on hemp until recently, and the smokable products. Eldred provided no evidence of such.
Livingston asked if there is a rapid test to determine the difference. If there is a suggestion that these companies that existed before the ban went into effect that is making hemp by a THC definition, are also in the business of marijuana which is legal, isn’t there a simple test to distinguish the two?
Eldred noted that nobody is suggesting they are making marijuana products. The issue is somebody smoking what is believed to be joint of marijuana and not hemp at face value.
Livingston asked how a product made in Oregon and legal to be imported into Texas, is going to be solved by this ban, how will it solve the LEO reaction.
Eldred said the law meets a rational basis and compared it to the plastic bag ban that was put in place in Austin, TX. That it has a conceivable basis. Along with that, the state has the right to ban the manufacture of any item in Texas. From there Eldred admitted that the law isn’t perfect, but still rational which is the bar he claims the law has to meet. He then reminded Judge Livingston that this is a facial challenge and that the burden of proof is on the plaintiffs as they made the claim.
Eldred also claimed that prior to 2019 that nobody was authorized to create Hemp products in Texas or anywhere because it was a schedule 1 substance. That from there he has no idea what these companies were doing before the legislative bill was passed, as he claims the manufacture was still illegal in Texas.
Livingston pointed out the Wild Hemp Hempettes was in business prior to 2019 and that a company with HEMP in the title was obviously involved with Hemp. Furthering that the state obviously knew that this company was around, but if illegal why nothing was done then.
Livingston asked how the law advances the goal that DSHS claims if the public can go around the sales ban and still smoke in public. DSHS admitted that it would just reduce the prevalence because sales aren’t available the law isn’t perfect.
Eldred continued using the same basis repeatedly, in different terms, for the states opening argument.
In the evidence presentation economist Robin Goldstein was brought forward to discuss the economic fallout a ban would have on the industry. His calculations states that it would be $2.9 million minimum possible profit loss for partial closing with reopening in Oklahoma, and up to an estimated $13.8 million if the ban is in full effect with no relocation and a complete shutdown of just Wild Hemp Hempettes in Dallas. Goldstein then calculated $1.4 million in relocating cost and $54 thousand in ongoing monthly costs for things such as maintaining labor force during relocation fees. These figures were just for Wild Hemp alone in Texas, and not countless other businesses.
Eldred objected to several questions asked of economist Goldstein, stating that testing and the issue of prevalence was not in the realm of Goldstein’s profession of economics, as he considered these technological questions. Livingston sustained the objections.
Sarah Kerver noted that the business she owns, 1937 Apothecary, which sells and manufactures smokable hemp products would likely go out of business entirely if the ban is put into full effect.
“This would put my employees and daughter out of work as well. This is a legacy business,” Kerver stated.
Kerver further explained that if she operated outside of Texas she would be able to still sell to Texas residents. That if only the retail ban was upheld, she would be able to manufacture, send them to a business outside of Texas, and then they could be sold to Texas residents again. If a complete shutdown happens, her legacy would disappear with the business.
Zorn later stated in the case that the law itself has contradictions with other existing laws in the state.
In their closing arguments, Zorn reiterated what was standard required by the Patel case and that the state had shown no evidence to the contrary of their own presentation. Eldred repeated the same basis and terms that the state expected for the law.
Full disclosure: Funding for the legal fees and attorneys on the case is coming from plaintiffs. A small fraction of expert research and court appearance fees funding comes from the Texas Hemp Legal Defense Fund which also looks to fund other cases without private plaintiffs. Texas Hemp Reporter receives no compensation from this fund and is only involved in the reporting of the current case.
A date has not been set for any more testimony or judgment as another hearing has to be held about redacting proprietary information. The temporary injunction is still in place.
It will be noted that of the speaker in the case, Eldred was consistently cutting in and out as it appeared he had a poor audio connection and Zoom issues at the beginning of the hearing.
Late last year, Scott Bailey appeared on the Texas Hemp Show podcast with Texas Hemp Reporter magazine’s publisher Russell Dowden. There, the certified public accountant at the Raleigh-based firm Carr, Riggs & Ingram (where he is also partner) discussed research grants, opportunities in the hemp industry, market recovery after an over-saturated 2019 growing season, as well as challenges hemp farmers faced in the pandemic year.
Now Mr. Bailey, formerly the treasurer for the North Carolina Industrial Hemp Association, has returned just in time for tax season to provide Texas hemp farmers (and even those considering getting into the industry) sound advice in navigating their financial futures.
He wants hemp farmers to realize, first and foremost, that hemp is a very unique crop, one that grows and is farmed quite similarly to tobacco. “It takes on a lot of character of the soil that it’s planted in,” Mr. Bailey said. “So if you have soils with pesticides and fungicides, which can have traces of heavy metals in the soil around where you’ve planted hemp, then that plant will take on those characteristics. That creates risks, because if you have pesticides and fungicides not approved by the FDA, you can’t sell hemp flower.”
TIPS FOR HEMP FARMERS DOING THEIR 2020 TAXES
Plan Early. Filing and paying tax liabilities earlier than standard corporate and business deadlines can create some relief in making estimated tax payments. This way, before the crop actually comes in, you’re not having to estimate your income or make estimated payments.
Find the Right CPA. Do your research, really doing a deep dive into the tax professional with whom you would be working. Do specific Google searches, and thoroughly read a tax professional’s website, pu and LinkedIn page. Also, try asking a CPA directly about what they know about the hemp-farming industry. “You’ll know pretty quickly if they know what they’re talking about,” Mr. Bailey said.
ADVICE TO ROOKIE HEMP FARMERS
Know the BIG THREE Long Before You Harvest. Know your seed, your soil and your source of sales. Will where you plant a specific seed variety produce strong yields? Is the soil clean and free of heavy metals and contaminants? Lastly, be sure you can convert this profitable plant to cash by knowing well in advance how and where you’re going to sell your product.
Line Up Your Testing Lab Early. Being such a new industry, there’s a shortage of testing labs in the U.S. So early in the business-development process be sure that you have a working relationship with a lab so that you can make sure your product has less than the legal threshold of 0.3 percent THC content.
Start Small. Not until there is a standard commodity price for hemp will crop insurance be available for hemp farmers, as a standard commodity price can be the only surefire way for insurance companies to accurately evaluate risk. “Our advice for a lot of people getting into hemp farming is, start small, get used to it, get good at it, and then increase your quantities. Be as sure as possible that what you’re growing you know you can sell.”
Hire a Knowledgeable CPA to Help You Jump through the Hoops of Grant Funding. An accountant who understands the hemp industry can you help apply for various types of grants, assisting you as you navigate your way through additional accounting requirements such as state and federal grant fund expenditures and various compliance’s.
CBD use has exploded across the country to the point where consumers are mind boggled at the sea of choices. Some patients who it could greatly benefit from CBD, decided early in the game that it’s over-priced snake oil because they bought a shady off brand at the local 7-11 two years ago that did nothing. Thankfully since then, the market has shaken out to make room for legitimate brands that specialize in reducing inflammation, anxiety, PTSD symptoms, epilepsy, depression, neuropathy, spasms and more.
Even small towns across the country have a CBD shop these days because it is such an effective natural way to self-medicate. They range from sleek and clinical to funky and fun, and
depending on what you are comfortable with you can find a shop to fit your needs. When choosing products, it’s best to consult with an expert, but doing your own research online is a great place to start. A reputable manufacturer will provide lab tests; either a QR code on the bottle will lead to itemized batch identified results from a certified lab, or you can find them on the product website. Look for individual tests that show a current dated result naming the specific product you are considering.
Herbal Root Collective in Austin, TX brings their shop to farmer’s markets in the Austin area with an expert who can recommend the right product and dosage for you. With a background in medicine, founder and product developer Caitlyn Hendricks says that the majority of her clients are older folks who suffer from arthritis, bursitis, and high blood pressure. All their products are lab tested and offer a variety of applications from lotion and oil, to roll on, gummies and smokable flower.
Instead of Starbucks, take a field trip to the groovy CBD coffee and snack shop, LazyDaze In Pflugerville, TX. It is veteran owned and operated by Shaunie Haynes and Ken Nance, who offer an extensive variety of goodies from CBD infused Laura Palmers to Cool Beans, Dude coffee and pet treats. If you are in the industry or provide a service, check out their 420 B to B event in Jefferson, TX. You must contact the owners for an invite to this private event.
Restart CBD is an Austin dispensary owned and operated by three sisters who work with certified organic farmers to create alternative remedies to achieve self-healing. They offer a colorful array of edibles including salt water taffy, peanut butter nugs, cold brew, caramels and Delta 8 brownies and chocolates that make taking medicine yummy.
CBG, or cannabigerol, like its cousin CBD, is a powerful non-psychoactive cannabinoid that can be helpful in relieving symptoms of glaucoma, treating inflammatory bowel disease (IBD), alleviating inflammation in multiple sclerosis, protecting the nerves in Huntington’s Disease, and inhibiting the growth of carcinogenic cells in the colon. According to a study on PubMed.gov, CBG had a positive effect on intraocular tension, a main risk factor in glaucoma. But unlike CBD and THC, CBG does not cause conjunctival erythema and hyperemia, making it a preferable treatment. Green Mountain Flower Company in Austin, TX offers a 1,000 mg tincture available in the shop or online.
From the plethora of CBD brands available, deciding what is right for your needs is a process of exploring and learning about this amazing medicine that can relieve a laundry list of symptoms. If your traditional medications are no longer satisfactory in relieving pain and suffering, it is worth the time and money to take your health into your own hands by getting in touch with a reputable CDB dispensary today, for advice and more information.
Since my youth I have collected stamps, and one way that I go about philately is by topic. In the twentieth century, nations started putting images of almost anything on a stamp as a way to sell them and promote their land. Heads of state gave way to Elvis and the Beatles, while politics and war also made their way onto these mini-posters. Orchids, bats, cactuses, falconry, basketball or baseball, you name it, there is a stamp for it.
For hemp too, there are stamps.
The first is of a woman hemp picker in the Italian Workers’ set of 1950, Scott # Italy 565. It exists with an overprint for use in Trieste, issued the same year: Scott # Trieste 106.
The next one, or two, are British stamps depicting hemp in North Borneo. The first was issued in 1950 under King George VI, with his image, while the second, which is the same design, replaces his with that of his daughter Queen Elizabeth II. The latter was issued in 1955: Scott #s North Borneo 247 and 264 respectively.
Not a large selection for what was once the world’s most traded commodity; and for what was certainly used as a raw material in the production of stamp paper until tree pulp replaced hemp pulp. Stamps arrived on the scene in August of 1840, with the penny black, depicting the present monarch’s great-great-grandmother, Queen Victoria.
The Victorians grew hemp – as did the Italians and Russians and just about everyone else including the Americans.
The most sought after hemp stamps are in fact the American revenue stamps, Scott #s RJM1-RJM8; the first four were issued in 1937, then re-issued in 1962. The 1937 set was issued in $1, $5, $10 and $100 denominations, the 1962 set in $1, $5, $10 and $50 denominations. Rather than print stamps specially for this purpose, existing revenues called documentaries, used to pay the taxes on financial documents, were overprinted in black with the words: MARIHUANA TAX ACT OF 1937. The same overprint was used for both sets.
As the word on the stamp was not hemp, but ‘MARIHUANA’, which was not in common use at the time, it only confused farmers. Some say that was the purpose. Most farmers did not understand the new rules and did not equate hemp with any type of drug.
Today we know the difference, and we can choose from over 1,000 varieties of Cannabis sativa; some for CBD and recreational use, some for seed, some for paper, some for textiles among other applications. The list is extensive and as the cultivation and processing of hemp increases in the US and around the world, it will be time for another set of stamps to depict this resurgent industry.
Hemp businesses are booming throughout the nation as legalization is expanding on both the federal and state level. Hemp, or Cannabis sativa L., was banned in the United States for approximately 80 years until Congress passed the 2014 Farm Bill. On December 20, 2018, President Trump signed into law the Agriculture Improvement Act of 2018, more commonly known as the 2018 Farm Bill, which permitted states and tribal nations to participate in hemp production programs and removed hemp from scheduling under federal drug control laws, leading to a resurgence of this non-psychoactive, cannabinoid-rich plant in America.
Due to these recent changes in federal and state laws, hemp goods are being sold into commerce to consumers across the nation. Hemp businesses seeking to capitalize on this monumental legal transition need to ensure that their brand is protected, which can be accomplished by obtaining a trademark with the United States Patent and Trademark Office (USPTO). Easier said than done.
Trademarks Overview
A trademark is a type of intellectual property most often consisting of a word, phrase, or logo that identifies the source of ownership of one’s goods and/or services and legally differentiates such goods or services from others in the industry. Obtaining a federal trademark provides the trademark owner the exclusive right to use the trademark nationwide and allows the owner to pursue an infringement action against others for using an identical trademark or a trademark that is confusingly similar for ordinary consumers.
Regulatory Considerations
The 2018 Farm Bill removed “hemp,” and cannabinoids derived from hemp, such as cannabidiol (CBD), from the Controlled Substances Act’s (CSA) definition of “marihuana.” See 21 U.S. Code § 802. “Hemp” is now defined as “the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids…with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.” 7 U.S. Code § 1639o. Thus, properly sourced hemp and CBD are no longer controlled substances under the CSA. In response to this statutory change, and in light of the growing rates of filings for hemp-derivative goods, on May 2, 2019, the USPTO issued Examination Guide 1-19 for trademark applications for cannabis and cannabis-related goods and services.
The USPTO’s examination guidelines establish that the 2018 Farm Bill removes the CSA as a ground for refusal for registration of trademark applications filed on or after December 20, 2018 (the date the 2018 Farm Bill became law), that include lawfully sourced hemp or CBD goods containing less than 0.3% THC. Where use in commerce commenced prior to December 20, 2018, the USPTO will allow applicants to amend their filing date to that date, and, if needed, to amend their filing basis.
Although the 2018 Farm Bill and the USPTO’s Examination Guide have paved the way for hemp/CBD trademark applications, the 2018 Farm Bill explicitly preserved the United States Food and Drug Administration’s (FDA) authority to regulate products falling under the purview of the Federal Food, Drug and Cosmetic Act (FDCA). The FDA maintains that it is illegal to include CBD and THC products subject to the FDCA, including foods and beverages, or to sell CBD and THC products as dietary supplements, because the substances were investigated and approved as active drug ingredients. See 21 U.S.C. § 331(ll). Consequently, the USPTO, which defers to the FDA’s stance, will refuse registration for any ingestible good subject to the FDCA that contains CBD and/or THC.
In contrast, the FDA has provided guidance on its website that the sale and marketing of cannabis-derived cosmetics is permissible, so long as these goods are not drugs or adulterated, misbranded, or intended to affect the structure or function of the body, or to diagnose, cure, mitigate, treat or prevent disease. In turn, the USPTO currently permits registration of trademarks for hemp-infused cosmetic or topical goods that are compliant with the regulations of the FDA and 2018 Farm Bill. This is an interesting anomaly, as cosmetic goods are certainly subject to the FDCA.
Registering Hemp/CBD Trademarks
The first step in attempting registration of a hemp or hemp-derivative goods or services trademark with the USPTO is selecting a registerable trademark for your goods and/or services. Trademarks are categorized on the sliding scale of distinctiveness, ranging from highly distinctive marks (fanciful and arbitrary, and suggestive marks), to merely descriptive marks, which merely describe an ingredient, characteristic, quality, or feature of the goods or services. See TMEP § 1209.01.
Fanciful marks are those that have been invented solely for functioning as trademarks (e.g., EXXON); arbitrary marks are comprised of terms that have actual meaning but do not suggest or describe characteristics or purposes of the goods or services (e.g., APPLE for phones); and suggestive marks are those that require imagination or thought in reaching a conclusion regarding the nature of their goods or services (e.g., COPPERTONE for sunscreen). See id. at § 1209.01(a). These “inherently distinctive marks” are typically registerable on the USPTO’s Principal Register, assuming availability of the mark. Meanwhile, merely descriptive marks are those that simply describe ingredients, qualities, characteristics, or uses of the goods or services, and such marks are almost always refused registration by the USPTO under § 2(e)(1) of the Trademark Act, 15 U.S.C. § 1052(e)(1). See id. at § 1209.01(b). Therefore, choosing a highly distinctive trademark is advisable, as this increases the likelihood of registration with the USPTO.
Next, it is strongly recommended to conduct a comprehensive trademark search report to ensure your trademark does not present a potential “likelihood of confusion” with any other trademarks. Under US trademark law, “likelihood of confusion” is the standard for trademark infringement. A full domestic clearance search report provides records from both federal and state databases, as well as common law databases, including domain names and company registries and use of similar trademarks on social media platforms and the Internet. If unable to conduct such a report, it is suggested to at least perform a preliminary search on the USPTO’s Trademark Electronic Search System (TESS) to help determine whether a bar to registration from a similar mark may apply; however, this free search is not nearly as thorough as the comprehensive search report and requires complex Boolean search methods to be effective.
Trademark clearances searches prior to adoption of a mark are critically important because commencing use on an identical, or confusingly similar trademark, could lead to getting sued for trademark infringement, a lawsuit that, on average, costs about $375,000.00 to defend. Moreover, based on §2(d) of the Lanham Act, an Examining Attorney may conclude an applicant’s trademark is confusingly similar with a registered trademark regarding the specified goods or services and issue a “§2(d) likelihood of confusion” refusal. See TMEP § 1207.01.
After the appropriate search, you must create an account with the USPTO to apply for the trademark via the Trademark Electronic Application System (TEAS). If the applicant is currently using her trademark in commerce, meaning sales or shipments across state lines to bona fide purchasers, in conjunction with her goods and/or services, the applicant should select the Use in Commerce filing basis under Trademark Act Section 1(a); however, if the applicant is not currently using her trademark, but has a bona fide intention to use it in conjunction with her goods and/or services, the applicant should select the intent-to-use filing basis under Trademark Act Section 1(b). Further information on the USPTO’s mandatory fees and timelines for processing trademark applications and maintaining registrations may be accessed on the USPTO’s website.
As noted above, due to the FDA’s stance regarding the illegality of CBD and/or THC as dietary supplements or additives to consumables, it is not recommended to apply for trademarks that may include such goods or services until the FDA provides further clarity. However, an applicant can strategically position herself to protect her trademark by fully excluding CBD and THC from such goods, apply for the relevant classes, and await said FDA guidance. Currently, registration of trademarks for compliant, non-ingestible CBD/THC goods are permitted by the USPTO.
If the applicant’s trademark includes the phrase “HEMP,” “CBD,” or a similarly descriptive cannabis-related term, a USPTO Examining Attorney may require the applicant disclaim such term. This disclaimer would simply indicate the applicant does not claim exclusive rights to said descriptive portion of the trademark. Lastly, be prepared for any potential USPTO-issued office actions, as the registration process is subjective since different Examining Attorneys are assigned to various trademarks.
Conclusion
Hemp companies should certainly consider filing for a federal trademark to ensure they can protect their brands. Trademarks are appreciable assets, and their worth grows with the company as more consumers begin to recognize the brand. Due to the complexities in obtaining federal trademarks for the cannabis and hemp industries currently, guidance of counsel is strongly recommended.
Paul Stevenson is an associate attorney with Ritter Spencer PLLC who practices trademark law and represents clients in all facets of the cannabis and hemp industries, including dispensaries, growers, processors, manufacturers, retailers, and more.
January 28, 2021, Non-violent Cannabis offender Michael Thompson at the age of 69, was released from prison after 23 years behind bars even though recreational cannabis use has been legal more than two years in Michigan. Before he was granted clemency, his first opportunity for release would have been at the age of 87.
Sarah Gersten, Executive Director and General Counsel of Last Prisoner Project and founding member of Michigan Cannabis Freedom Coalition, said, “Today marks a momentous occasion for Michael Thompson, his family, and his countless supporters throughout Michigan and across the country. Unfortunately, it also serves as a stark and somber reminder of the thousands of cannabis prisoners who remain behind bars while others profit off of a now legal industry.”
The Texas Hemp Reporter had the chance to catch up with Sarah a week later:
This is pretty exciting right?
SG: Very exciting, it’s been an incredibly exciting month and even more exciting week.
How often does this happen?
SG: The release? We have two distinct release programs, one is the clemency commutation side of it, and then compassionate release. Those are the more frequent, more standard; you go through the judiciary. With the clemency campaigns it’s about crafting a compelling narrative of why someone deserves release, so to do that effectively you have to really get to know their family. With Michael Thompson over the past year I have gotten to know him on a personal level so well. We pushed this really robust campaign for him, and he became sort of a national symbol of this issue. For this to happen with someone that has become as high profile as Michael for me personally to be so involved to get to know him, his family it was once in a lifetime really.
That’s so amazing it’s giving me goosebumps. Do you think this is perhaps a benchmark for prisoners in this similar situation?
SG: It’s tricky because we are absolutely pushing these types of campaigns, but the bigger effort that we’re pushing both nationally and on a state level is for broader policy reform that enables the release of anyone still incarcerated for non-violent cannabis offenses. That work is not as personally satisfying because you don’t get to know the prisoners and the families as you do when you’re crafting a clemency campaign, but it will lead to broad systemic reform and impact thousands of individuals.
I was reading about this and he seems like a salt of the earth, pillar of the community kind of guy and it’s so tragic, but what is his plan now for the future?
SG: Before he was incarcerated Michael worked within his community; he had received awards from the NAACP for his work doing violence reduction in Flint MI, where he’s from, and working with teens involved in gang violence. He really continued that kind of work when he was incarcerated. He served as a mentor to individuals serving with him and people often thought of him as a father or grandfather. He should be retiring now, he loves to garden and be outside, but instead he wants to dedicate himself to criminal justice reform and prison reform.
Wow. Did you get to be there when he was released?
I was! I was actually the one to drive him home! I think because I’m from New Hampshire and it was snowing in MI and a lot of the team was from the west coast. It was awesome.
Do you think this could cause a floodgate of releases?
I do. Through Michael’s case we’ve also been identifying other prisoners in MI that are there for cannabis offenses, that we can submit their clemency petitions for, and through Michaels campaign and advocacy around his case we’ve gotten buy in to reform this issue from the attorney general, to the lieutenant governor, several progressive prosecutors in MI, state law makers. So, through Michael, we’re already pushing this really broad campaign and doing the groundwork to get more individuals in MI out.
What is your goal with the federal work that you’re doing?
Mr. Thompson before his incarceration.
SG: It’s similar federally in that we had spent months advocating with the white house, with the Trump administration for clemency for our federal constituents and three weeks ago he granted clemency to several of our constituents, and I absolutely think that is going to be a symbol of the type of reform that needs to be enacted. What we saw is that the process is fundamentally broken, we need an effective, transparent process and especially for marijuana offenders. There is so much bi-partisan support to provide retroactive relief for those still incarcerated federally. And that was before this most recent signal from majority leader Schumer and other senators to legalize federally.
Great! Do you see a timeline? Could this happen in the next year or two?
SG: If you had asked me that a week ago, I would have been on the fence, but with Senator Schumer coming out and wanting to make this an issue, within this congress, this year, I absolutely think it could happen.
Fantastic! What has been your biggest hinderance to your goals with the Last Prisoner Project?
SG: I would say stigma. There is still such a stigma attached to cannabis, even in criminal justice circles we often get push back because of our narrow focus. People don’t perceive this as the monumental problem that it is, and the other stigma is just around the idea of what we’re doing. There are so many people in this country, elected officials, that believe if you committed a crime, even if it’s now legal, even though the majority of Americans believe it shouldn’t be a crime, that you should remain incarcerated and that you don’t deserve a second chance. That is why it is so important to raise up the stories of people like Michael. For the people that have that mindset, so they can get his story, and that he deserves a second chance, and that he never deserved to be incarcerated in the first place.
Indeed. How can regular people on the street help? I see on the website you have a call to action to write letters, emails and calls, was that the biggest push for it his release? Was that how it eventually happened? Through the voices of the people?
SG: Yes, I think Michael’s case is a shining example of the power of grassroots organizing and advocacy. Without having hundreds of thousands of people write letters and make calls to the governor and the parole board he would still be incarcerated. People in this moment and climate are really jaded and think what I do won’t have an impact. Michael’s case should show everybody that it absolutely does make an impact and those calls were heard. We really harnessed the collective power of so many people to advocate for Michael.
I will look out for him in the news. He is such a figurehead for this community. It’s an honor to speak with you and I appreciate your time today.
2.Release day from left to right: Last Prisoner Project Constituent Donte West, Michael Thompson, Sarah Gersten, and Last Prisoner Project Board Member Erik Murray.
Sarah Gersten Executive Director and General Counsel at Last Prisoner Project
I yet again had the pleasure of speaking with Leah & Daniel Lakstins of Higher Ed Hemp Tours (HEHT) of Austin, TX about how their business model helps within the hemponomics sphere. Back in June they launched their Hemp Brand Dashboard. The company claims to fill gaps in the hemp supply chain by connecting brands directly to retailers and other ancillary services through a verified database feature.
With COVID still causing in person tours to stay virtual over liability concerns, education on verified and reliable brands is focus to include weekly news, consumer feedback from hemp tours, education courses, and trade show recaps.
Daniel and Leah pointed out to me on a phone call recently, than many retail fronts and brands entering the industry purely as hemp end-product commodity providers or product suppliers, just don’t have the basics in place to succeed long term.
Many don’t even have any basic liability insurance which is crucial if a customer becomes injured from a product on the shelf. The service HEHT provides can help give a customer ease of mind when seeing the verified logo, while educating retailers on how to be prepared properly for this changing market. They paint a scenario where a customer buys a product, and becomes injured because of an issue with a hemp product. In Texas, the retail shop is held responsible under Texas law for ensuring all labs were done on the product and that it is safe for human consumption if labeled for such. Without insurance, the retailer could be facing heavily burdensome fines and restitution penalties which possibly places them out of business before even paying that off. The customer may not collect all the damages needed to cover the injury they incurred from the faulty product.
Beyond insurance, HEHT verifies that the company is using all natural products, is properly licensed in the state of Texas, and that the lab reports are available and provide the required data per Texas law.
“We saw a huge disconnect between retailers and consumers, the consumers did not understand what cbd really was. Stores were struggling with legalities, understanding lab testing, getting people in the store, and even how to talk to consumers about the product without making medical claims. People have been making ridiculous claims about their products in the beginning and we have been able to advise people on how to promote this without crossing the legal lines.”
About Higher Ed Hemp Tours
Partnered with Cintia Nava, the three have known each other for several years and were initially not in the hemp industry. HEHT is actually part of their most recent venture, Last Squirt, which is a patented device to place on the tips of bottle sprayer tubes to get the last bit of a product, the last squirt, out of the bottom on the bottle. The company Last Squirt Inc which was started by the Lakstins in 2015, considers itself to be of the beauty and cosmetics industry.
The trio decided that they wanted to add a product to their line, and possibly branch off into the the hemp world with a line of beauty products that would include hemp based materials. Upon researching hemp providers and their crops, and being blown away at all the applications that the plant could provide, they decided to move forward in that direction. They wanted to start this operation in Texas in 2017, but were running into legal issues in Texas due to the status of hemp being illegal under the compassionate use act. There was just too much grey area legally to operate profitably as a startup, and they decided to hold off for a moment of time.
The group saw an issue taking place in a town they wanted to start up in. In 2018 while attending conventions, the trio noticed that Austin wasn’t catching on to the hemp and CBD craze the way the rest of the nation was. They saw there was a need in the market.
HEHT noted that the hemp community doesn’t seem to be vibing with the complete marijuana industry, and they want to connect and bridge that gap in Texas. Their mission is to connect an educated consumer with verified CBD brands. So how does one show credibility in a newly formed marketplace? By building off of previous legal and educational knowledge.
While the Lakstins are the innovators and business minds, Cintia has a bachelors of science in criminal justice, and a masters in education making her the legal knowledge and the teacher of the subject for the company. This allows them to consult and educate both the business side and the consumer side of the industry. She wanted to be in the cannabis industry, and walked away from a language school in Austin (she speaks four languages fluently). Realizing that retailers didn’t have much information and neither did the customer, this needed to be implemented. Cintia is even working on Hemp Business Builder as a product for HEHT which will be like taking a TABC course but for the employees of the hemp industry.
The tour before COVID, was a walking tour or even a party bus, where paying customers and consumers are taken to several business in town that sell a variety of products containing CBD. That has gone virtual for the time being. Some are just hemp retailers and others fit that Keep Austin Weird niche. One may take a tour and wind up going to a diner called Kinda Tropical that offers CBD infused waffles. The tour frequents Texas Sake which creates a hemp infused sake, along with Indigo Smart Cafe which serves CBD infused foods such as Chilean Style Hot Dogs. The tour does educate people that these methods are not likely to be the best ways to get any benefits that consumers possibly think they may be getting from CBD.
If one would like to reach out to HEHT, one can reach out via this link.
Jesse Williams is a writer for TXCANNACO.COM, you can find other articles from him there and hear him on the Texas Hemp Show podcast as the co-host
March 2021 Edition delivers to all Austin area HEBs & Whole Foods March 5th. We get ready for the spring season here in Texas as farmers prepare to plant. Read about our seed to sale process, seed companies like Trilogene Seeds, & Hemp Depot. The Last Prisoner Project gets a victory, and we interview the Father of the Legal Cannabis Industry Steve DeAngelo, as well as Sweet Sensi CEO Greg Autry .
Matt is a breeding and processing specialist in the cannabis industry. He has helped build multiple successful cannabis companies ranging from breeding to extraction & post refinement. He is widely known as a thought leader in the industry and speaks at multiple cannabis events including the CBD expo in San Diego and Texas Hemp Conventions. Matt is a cannasseur of top-quality cannabis products and has helped develop some of the leading strains in the hemp & cannabis industries grown today. His direct to consumer brand, Smoking Icons, is a top shelf product full of premium hemp flower exclusively bred by Trilogene Seeds. Matt currently serves as the CEO of both Trilogene Seeds and Smoking Icons.
Podcast # 18 Had Coleman, Russell and Jesse in studio while Matt called in from Longmont Colorado.
Hemp Depot is one of the largest providers of the highest quality hemp CBD oil products, seeds, and clones in the US and the extreme care they’ve put into their growth and vertical integration has taken the company to new heights.
Now a complete seed-to-shelf operation, Hemp Depot did not initially set out with this business model in mind when they were founded in 2015. Andy Rodosevich and Luke Pickering, co-founders of the company, set out in the scope of creating and selling CBD but upon beginning to farm their crops they found there were no good seed genetics for cannabidiol. Out of default, they started a project to create genetics to fit the .3 THC limit and fall into the category of industrial hemp. They subsequently found that the extraction process into oil and distillate wasn’t available at that time either which, again out of necessity, led them to build the infrastructure to make their systems work and this soon translated into the manufacturing side as a whole. Their recognition early on that total control of the process allowed for total traceability and that is what has set Hemp Depot apart in the industry.
The company has grown into three farms across Colorado – a hemp seed production and genetics & testing research facility in Yoder, one in Rush, and another farm containing an extractor in nearby Cope just east of Denver. Colorado Springs houses their manufacturing facility and headquarters where they push production and sales. Hemp Depot deals in retail, wholesale, and white label CBD distribution in a range of topical, tinctures, isolates, and soft gels & tablets – all of which are made in their newly expanded 30,000 sq.ft. facility that houses high speed liquid filling machines, dry powder tablet presses, gummy producing equipment, hot & cold fill topical machines, and high speed labeling capabilities. Their commercial line ranges from high end topical and beauty brands, medicinal ingestible pain relief, tinctures and topicals, and a new smokable line that they are preparing to release called ‘Eddie.’ Hemp Depot’s seed sales are also a consistent line of their business offering custom genetics for grow operations.
2020 brought about a lot of change across the board worldwide, and the hemp industry saw some shifting as well. Many new farmers experienced growing pains of going hot in their inaugural season, while others chose not to grow at all following the surplus harvest of 2019. With a 70% reduction of hemp-growing acreage this past season it is estimated that 2021 will mirror that same farming pattern due to the overproduction in the marketplace. With no futures market, some farmers remain reserved about growing hemp and are reverting back to traditional grow crops they’re familiar with as their prices are currently higher in the market, but from a consumer standpoint they benefit in the market. All of which the company takes into consideration in their operations.
Mike Wandzek, Sales Director in seed & genetics and bulk at Hemp Depot, explained that the company’s viewpoint in structuring and conducting business has been pivotal in their success, even in the 2020 pandemic pivot many businesses had to face. “We were on of the companies fortunate enough to have enough vertical integration and enough sales to pull through and I don’t believe we had a single layoff at the company [during the pandemic.] We were able to keep our manufacturing side employed and busy and had preordered enough to keep us going. 2020 was obviously a little bit of an unknown and now that it has passed we’ve come out better and stronger on the other side.”
Hemp Depot continues to reinvest in their business while viewing it from both an industry and consumer standpoint in efficiency and quality and strive to help the CBD industry as a whole more forward with their focus. With a notable list of certifications with their name including Platinum ISO 9001, Kosher and Leaping Bunny, FDA registered, CBPHE, NSF, Colorado Hemp Authority, National Hemp Association, and all hemp authority certifications, Hemp Depot proves to put quality into their products and production and follows through from start to finish.
The resurgence of hemp production in the US has brought about a lot of new supportive agricultural industry around it – Biochar Now out of Loveland, Colorado has revived a centuries old practice with their multi-patented manufacturing technology to aid in the farming process of this high maintenance crop.
Biochar is a highly adsorbent, specially-produced charcoal with unique properties that is used across a multi-industrial setting in a variety of means ranging from soil reclamation to algae removal programs. With more specialty agriculture, like hemp, increasing in popularity, the benefits of this organic-based solution are being proven to aid with exponentially higher yields in an economical fashion.
The general concept dates back over 5,000 years to the agricultural practices of indigenous Amazonian tribes. Modern technology and political push has reformed it into a suitable ecological alternative for oil & gas, railroad, plastic, concrete, and asphalt companies with EPA compliance and soil amendment. In high value crop production it’s a one-time investment proven to improve the soil, aid in nutrient absorption of the plant, and result in overall increased growth of the crop.
As hemp is a high maintenance crop in terms of maintaining the legal standards of THC, growers need to take into consideration how big a part nutrients play in the growth cycle and quality of the resulting harvest or a crop can quickly go hot. Biochar helps mediate this by binding nutrients from the fertilizer and keeping there at the root zone for the plant to take up when and wherever it needs it. Its high level of absorbency helps structure water usage as well.
Biochar Now’s patented technology converts agricultural and forestry waste into a pure carbon through a process called pyrolysis. This is where the biomass is heated in an oxygen-deprived environment to break down the cells and convert the cellular structure into pure carbon, leaving the part that has special properties which are beneficial to the growth of the plant. These parts bind nutrients, absorb water and release it back to the plant, inviting in microbes to house in it to make a living soil. Growers work the 2-3% of product by volume into the root zone as a “one size fits all” additive that doesn’t affect pH levels. When the fertilizer or manure is added it binds the nutrients and remains there for the plant to take them up when and wherever and prevents the nutrients from washing out into the water table or nearby water sources causing algae blooms. The added benefit of its water retention properties is that it helps structure and decrease water usage by almost half, making it a beneficial choice in drier climates especially. With a 17 thousand year half-life in soil, the product is a one-and-done application and hemp customers see a return on investment within the first harvest, increasing their biomass yields 200-300% in a single season. An added benefit is that it doesn’t require any specialized equipment in the application process as the company provides a variety of sizes they can recommend to fit pre-existing equipment.
Biochar Now prides itself in holding more environmental approvals that any other company in their industry and as the technology is becoming more increasingly used and accepted, they are currently undergoing significant expansion throughout North America to bring this highly restorative product to more industries. As the hemp industry grows, greater efforts towards increased sustainability are being made in grow processes across the board. Biochar Now’s research and technological development towards sequestering carbon emissions and amending both air and soil is revolutionizing industries across the board and ushering in new growth for hemp.
As a new generation of hemp farmers and entrepreneurs take root across the country there are a multitude of risks that can take a new business down in the first years of establishment. Even the most seasoned farmer and savvy business person will encounter unforeseen obstacles in any stage of the process. These can become valuable lessons or fatal blows, and a well-developed business plan is the best defense against the latter.
Employing credentialed consultants to address potential problems, solutions, and make projections based on research and the valuable experience of others is the best way to forecast for success. Fortunately, Texas is home to a variety of advisors to guide you through every part of the process from seed to sale.
Assistance with business compliance and formation can be found with lawyers and accountants who specialize in hemp and marijuana law. Here in Texas, Ritter Spencer is known for their expertise in compliance and Cannabis Business Law Group-Coats Rose brings significant experience from across the supply chain in multiple jurisdictions that focus on commercial litigation. Carr Riggs and Ingram CPAs can help with tax questions, business set up, insurance and employee benefits packages. Navigating the nuances of regulatory compliance, government tax requirements, hemp/medical marijuana licensing, product labeling/marketing, and real estate issues in a rapidly changing landscape is tricky. Choosing a firm that specializes in this heavily regulated niche industry will provide guidance from the outset and insure compliance for your endeavor.
Consider the benefits of growing indoors in a greenhouse, or a land lease. The Texas Hemp Ranch in Webberville leases 10 acre pre-fertilized plots with two grow cycles and well water access or irrigation from the Colorado river. Avery Barksdale at Texas Greenland Development Company offers 5-400 acres to lease monthly or seasonally in several areas of Texas. Using greenhouses provides protection from the elements as well as pests. Customize the configuration to meet the needs of the landscape for the best outcome of your product by speaking with the experts at Reef Industries. They source a variety of laminates and provide fabrication options to suit every need.
With so many companies to choose from that offer seeds and starts getting a cross section of information about suitable varietals and methods is important. Factors to consider are latitude, soil PH, end use and certification. Uniseeds, Hydroshack, Riverside Hemp, and Garcia Bros Organics provide consultation services along with products to help farmers best determine which processes and products are best for their conditions.
Scientific analysis of soil, water, and fertilizers is the most effective way to determine what kind of additives to use for a successful harvest. TPS agricultural provides data analysis, DIY kits, lab consulting and solutions along with products to repair, stimulate, and improve production.
Identifying THC levels throughout the grow process is recommended, and certified lab tests are required at harvest time. Any laboratory testing hemp for THC concentration under the U.S. Domestic Hemp Production Program must be registered with the Drug Enforcement Administration to handle controlled substances. Zosi Analytical, and AFL Texas are both DEA approved and can identify toxins and provide cannabinoid and THC profiles. Some labs also offer manufacturing and consulting, labeling and R&D, shelf life studies and work with a variety of products from gummies to body products.
When it comes to harvesting, Texas Premium Hemp Producers LP in Ulm, TX are the experts in bucking and drying. Inpak Systems manufactures bag fillers and closers for seeds, flowers, dried pellets or chopped leaves and Hempsac manufactures the bags to protect and preserve the product during storage and transportation. Transporting the product poses a unique set of challenges where only experts should be employed like JW Transport Services.
All of these vendor contacts can be found in the Texas Hemp Reporter as well as here:
Adrian Garcia Farms, owned and operated by Adrian Garcia, is located in the west Texas town of Big Spring. Adrian has farmed cotton for the last three years on 200 acres of 100% USDA Certified Organic farmland. When the 2018 Farm Bill was signed, allowing for the cultivation of hemp, he turned his sights towards becoming one of the first organic farmers to grow hemp in Texas. He built a couple of greenhouses, sourced reliable CBD genetics and went through the USDA’s rigorous organic certification process and started growing hemp.
Garcia Bros Organics: 100% USDA and Texas Department of Agriculture Certified Organic Hemp Flower!
We discuss his celebratory win at the recent Taste of Texas Hemp Cup as Adrien and his family won the PEOPLES CHOICE award for flavor profile for his 2020 Berry Blossom flower.
The in-person event will be held in Houston, Texas on December 11 through 12 and feature networking, exhibitions, education, and seminars
Houston, Texas – October 28, 2020 – The Original CBD Expo South 2020 will be held in-person on December 11 through December 12, 2020 in Houston, Texas. The event, hosted by MACE Media Group, is the 17th conference by the creators of the Original Expo Tour and will be an exciting opportunity to bring the cannabis, wellness, and CBD communities together after nearly a year of virtual programming.
“We are looking forward to the opportunity to connect with and bring together our strong CBD community of leaders, new-entrants, and innovators,” said Celeste Miranda, founder and president of MACE Media Group and Cannabinoid Industry Association (CBDIA). “The CBD Expo is a time for us to reconnect, learn, and grow, both personally and professionally. We look forward to a safe and rewarding event.”
The event will feature exhibits from end products producers, equipment manufacturers, and ancillary businesses including financial and legal service providers that display the latest and most innovative advancements in CBD. Exhibitors will have the opportunity to directly engage with consumers, dispensary owners, and buyers from well-known entities like Whole Food, CVS Pharmacy, Starbucks Coffee, and Trader Joe’s.
In addition, the expo will offer unique cannabinoid education seminars from leading cannabis and cannabinoid PhDs, physicians, scientists, and researchers from around the globe. Seminar tracks include Research and Medicine, Regulation and Compliance, and Cannabinoid Education Certification.
Networking and community building opportunities will be at the forefront of this year’s event. Over 190,000 individuals have attended the CBD Expo since its inception and always brings a diverse group of cannabinoid and cannabis professionals within areas of education, advocacy, and business.
To attend this year’s event or learn more, visit us online at cbdexpo.net.
New restrictions and safety protocol will be in place due to COVID-19. To learn more about how we are protecting attendees and exhibitors, see here.Please direct all media inquiries to Chloe Latture at [email protected].
About MACE Media GroupMACE Media Group publishes niche cannabis industry trade publications. Its premiere title, Terpenes and Testing Magazine, was the first industry trade publication devoted to cannabis science. Its newer publications, CBD Health & Wellness Magazine, Extraction Magazine, and Hemp Farmer, revolve around the growing cannabinoid industry to provide news on trending applications, medical research, and updates with laws and regulations.
MACE also produces many trade events that attract dozens of cannabis and mainstream media journalists. Currently, MACE Media Group is producing a tour of CBD expos bringing together thousands of industry influencers, forming the most comprehensive CBD event in the United States.
