With all of the money on the table in the cannabis world these days, deals are coming together fast and furious. Not all of them are Constellation/Canopy scale, and plenty of these deals are getting done in the six-figure range. It’s tempting - but risky - to move fast, as a new opinion from the Delaware Chancery Court highlights.
A fight brewing in Nevada highlights certain challenges trademark licensors face when relying on licensees to manufacture and distribute their products. The issue is particularly acute for brand owners in the cannabis industry, where relying on local operators with requisite government licenses for marijuana operations is often the only profitable way to tap those local markets.
If you are an owner, operator, or manager of a U.S.-based cannabis company with “hands-on-the-plant” operations, or an investor in a U.S.-based cannabis company, you may be concerned about the current spate of “civil RICO” actions filed against similar businesses around the country.
Lessons learned so far from the unfolding Outliers Collective fiasco.