On May 20, Charlotte’s Web, the Colorado-based CBD giant and probably among the greatest names in legal marijuana, revealed that the company was awarded its 2nd 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 very first hemp strain to receive federal intellectual property security– US Patent No. 10,653,085 is an energy patent
This means, after satisfying a more strenuous process, including dropping off countless seeds at an official United States depository, Charlotte’s Web now declares as its copyright both the cultivar of hemp the business calls CW1AS1 as well as “techniques” of plant production and cannabinoid extraction.
Okay! But so what? Why patent a hemp pressure– why patent two? What does it all suggest? Does Charlotte’s Web now have legal claim to the entire CBD game?To the last question, no. And when it comes to what this suggests, for typical individuals and cannabis customers, extremely bit. For patent lawyers or competitors of Charlotte’s Web in the CBD market, it hints a bit more, but just a little.
A minimum of in the meantime, marijuana patents like this one aren’t actually planned to protect intellectual property 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 difference in between signing a check, or not.
Patents “create interest in the company, and are something financiers would look at,” stated Jonathan Hyman, an attorney and partner at the Los Angeles workplace of Knobbe Martens.
Whether Charlotte’s Web would enforce the patent, and how, “stays to be seen,” he added.
Company authorities were not available to talk about the matter.
Though cannabis-related patent applications have been a thing considering that well before legalization and have tripled considering that 2015, as IP Watchdog noted, the simple expression “marijuana patent” can still be setting off in marijuana circles. Patent talk can frequently result in galaxy-brain thinking like the “Monsanto is supporting legalization in order to steal marijuana” or the “Philip Morris is purchasing up land in Humboldt County” conspiracy theories.
When it comes to Charlotte’s Web, the company’s already locked up what’s probably its most important possession: its name. Charlotte’s Web is called for Charlotte Figi, the victim of youth epilepsy who enjoyed remedy for her symptoms after taking an extract of high-CBD cannabis grown by the Stanley siblings (and who passed away earlier this month after contracting COVID-19).
The world came to know Charlotte Figi and the Stanley siblings, seven photogenic Coloradans whose given names all begin with J, after they were plainly included in a 2014 CNN special hosted by Sanjay Gupta. A very famous children’s book and a really famous and recognizable name, the business was sure lock down the name “Charlotte’s Web” with a trademark– one the business is presently defending in federal court, after a rival business 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 very first patent.
Like nearly all publicly traded business in the cannabis sector, Charlotte’s Web is stuck in high-loss doldrums after hitting early peaks.
For the previous week, shares in Charlotte’s Web have been trading in the $7 to $9 variety in the Toronto Stock Exchange.
Despite being sold in more than 11,000 shops, the company still lost $1.7 million in 2020— a hit smaller sized than other business in the marijuana sector, however still in the red.
Patenting hemp genetics and the procedures to accomplish them will not suffice to save the rest of the company’s lost value. However if Charlotte’s Web wishes to be a global CBD brand name, with item in supermarkets and convenience stores all over the world– and why wouldn’t it?– this suggests something.
” Having this patent, that they can wave around and say, ‘Hey, we’ve got protection on it, and it’s the best range [of CBD rich hemp] that you’re going to get,'” stated Andrew Merickel, who holds a Phd in neuroscience and is likewise a lawyer and partner at the San Francisco workplace of Knobbe Martens. “That’s quite important.”
How valuable? That’s all up to the reasoning of the marketplace.