On May 20, Charlotte’s Web, the Colorado-based CBD giant and arguably one of the biggest names in legal cannabis, announced that the company was awarded its second federal patent on a cannabis plant. Unlike the company’s 2018 plant patent on a Farm Bill-compliant high-CBD hemp cultivar—which was the first hemp strain to receive federal intellectual…
On May 20, Charlotte’s Web, the Colorado-based CBD giant and probably among the greatest names in legal cannabis, announced that the business was granted its second federal patent on a marijuana plant.
Unlike the company’s 2018 plant patent on a Farm Bill-compliant high-CBD hemp cultivar– which was the very first hemp stress to receive federal intellectual property protection– US Patent No. 10,653,085 is an utility patent
This suggests, after satisfying a more rigorous procedure, including dropping off thousands of seeds at an official United States depository, Charlotte’s Web now declares as its copyright both the cultivar of hemp the company calls CW1AS1 along with “approaches” of plant production and cannabinoid extraction.
Okay! However so what? Why patent a hemp stress– why patent 2? What does it all imply? Does Charlotte’s Web now have legal claim to the entire CBD video game?
To the last question, no. For patent attorneys or competitors of Charlotte’s Web in the CBD industry, it portends a little bit more, but just a little.
At least in the meantime, cannabis patents like this one aren’t really intended to safeguard copyright in court– which is where a patent has its most practical worth.
No, this patent is probably meant for the market. I have a patent” might be the distinction in between signing a check, or not.
Patents “generate interest in the business, and are something financiers would look at,” stated Jonathan Hyman, a patent lawyer and partner at the Los Angeles workplace of Knobbe Martens.
Whether Charlotte’s Web would impose the patent, and how, “stays to be seen,” he included.
Company officials were not available to talk about the matter. In a statement supplied by Sylvia Tawse, the company’s director of interactions, CEO Deanie Elsner said Charlotte’ Web “will continue to pursue patent security for distinct and unique hemp genetics established by our gardening division.” Whether that implied there are any pretenders the company plans to take legal action against, she did not say.
Though cannabis-related patent applications have actually been a thing considering that well before legalization and have tripled since 2015, as IP Watchdog kept in mind, the mere phrase “marijuana patent” can still be triggering in marijuana circles. Patent talk can frequently result in galaxy-brain thinking like the “Monsanto is supporting legalization in order to take cannabis” or the “Philip Morris is buying up land in Humboldt County” conspiracy theories.
When it comes to Charlotte’s Web, the company’s already secured what’s most likely its most valuable asset: its name. Charlotte’s Web is named for Charlotte Figi, the sufferer of childhood epilepsy who enjoyed relief from her signs after taking an extract of high-CBD marijuana grown by the Stanley siblings (and who died previously this month after contracting COVID-19).
The world came to know Charlotte Figi and the Stanley brothers, seven photogenic Coloradans whose first names all start with J, after they were plainly included in a 2014 CNN special hosted by Sanjay Gupta. An extremely popular children’s book and an extremely famous and identifiable name, the business was sure lock down the name “Charlotte’s Web” with a hallmark– one the business is currently safeguarding in federal court, after a competing company dared market CBD items called Charlotte’s Web.
That’s what patents are for in regards to the law. Markets are another matter– and it’s worth observing that the business went public after protecting its first patent.
Like nearly all publicly traded business in the marijuana sector, Charlotte’s Web is stuck in high-loss doldrums after striking early peaks.
For the past week, shares in Charlotte’s Web have been trading in the $7 to $9 variety in the Toronto Stock Exchange. That’s a huge gain from the $4.24 seen at the business’s mid-March nadir, however still far below last summertime’s high-water mark of $2821, embeded in August.
Regardless of being offered in more than 11,000 stores, the company still lost $1.7 million in 2020— a hit smaller than other companies in the cannabis sector, however still in the red.
Patenting hemp genetics and the processes to achieve them won’t suffice to save the rest of the business’s lost value. But if Charlotte’s Web wants to be a worldwide CBD brand name, with product in supermarkets and corner store all over the world– and why would not it?– this indicates something.
” Having this patent, that they can wave around and state, ‘Hey, we have actually got protection on it, and it’s the very best range [of CBD rich hemp] that you’re going to get,'” said Andrew Merickel, who holds a Phd in neuroscience and is also a lawyer and partner at the San Francisco workplace of Knobbe Martens. “That’s quite important.”
How valuable? That’s all approximately the reasoning of the marketplace.