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CannaBeat – April 7, 2023

CannaBeat is a curated biweekly selection of top news stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

NBA Will Let Players Invest In Marijuana Industry And Promote Cannabis Brands Under New Union Deal, According to Report

In the new draft of the seven-year collective bargaining agreement (“CBA”), the National Basketball Association (NBA) is planning to remove cannabis from its banned substances list, and to let players promote and invest in cannabis companies. The CBA is also expected to officially remove mandatory drug testing requirements for cannabis and only subject players to tests if they show signs of problematic dependency. While the deal must still be ratified, it is expected to be approved. The move to cannabis acceptance has been a long time coming. Mandatory drug testing has been temporarily suspended for a couple years already, which demonstrates the leaders’ commitment to the overall movement. One aspect that separates it from other sports is allowing its players to promote and invest in the cannabis industry. As other sports have lowered the restrictions on use and testing, other leagues do not allow players to actively promote cannabis and related brands. This provides additional opportunities for NBA players and cannabis operators alike. At this point most of the notable sponsors for cannabis have been musicians by partnering with operators to create their own brands.

Other Noteworthy News

Cannabis Companies Aren’t Federally Legal – But Can Still Team Up with National Brands
While cannabis legalization isn’t the law of the land yet, some American cannabis companies are already partnering with national brands. Kiva Confections, a maker of cannabis edibles in six states, is partnering with burger chain, Fatburger this month to sell a limited-edition Kiva x Fatburger THC-infused ketchup. Sackville & Co. is partnering with Playboy to make smoking accessories. Green Thumb, a dispensary and consumer product company, is partnering with Circle K. The aim is to get cannabis into the conversation, and a fun, attention-grabbing product like cannabis ketchup fits the bill, said Kiva's co-Founder Kristi Palmer. The condiment packet will feature 10mg of THC - one dose of cannabis, and cost $5. Kiva’s edibles (infused chocolates, gummies, etc.) are available in California, Arizona, Nevada, Illinois, Hawaii and Michigan, but the ketchup will only be available in two Los Angeles retail chains, Artist Tree and Sweet Flower. Current law prohibits cannabis in any form from crossing state lines, so the company would have to produce and package the ketchup in each state separately to expand the promotion geographically.
Paychex ceasing direct deposits, other services to cannabis firms
U.S. cannabis operators are scrambling to find a new payroll provider after receiving a memo from Paychex advising that the company will no longer process direct deposits or offer other services for marijuana-related businesses. A March 29 memo obtained by MJBizDaily warns that, effective May 1, New York-based Paychex will no longer process direct deposit payments. “Cannabis-related businesses (CRBs) continue to face significant banking obstacles because major banks will not allow electronic fund transfers from CRBs over their networks – typically because of differing state and federal regulations around cannabis,” according to the memo from Paychex, which provides payroll and human resource products and services. “Paychex has worked diligently to provide as many of our services as we can within the parameters established by our banking partners. Unfortunately, we can no longer provide you with some of the services you are currently receiving from Paychex.” ……
“Cannabis in Germany will Be a Success Story:” Europe’s biggest Economy Moves Closer to Weed Legalization
Germany could be weeks away from introducing a bill to legalize cannabis under sweeping reforms that would greenlight the consumption and sale of the drug in Europe’s largest economy. Germany’s Health Minister Karl Lauterbach last week said that the plans had received “very good feedback” from the European Commission, the EU’s executive arm, adding that the bill could be announced by the end of March or in early April. “We will soon present a proposal that works, that is, that conforms to European law,” Lauterbach said, following months of talks with Brussels. The government published draft proposals for the legalization of adult-use cannabis in October, which it said aimed to improve public health. Lauterbach insisted that they would only progress to the Bundestag — Germany’s federal parliament — if the initiatives are compatible with EU law.
The Number of Legal Cannabis Farms in Calif. Is in Freefall
California’s legal pot market has lost hundreds of pot farms a month as farmers opt to quit the legal market. And signs indicate the industry is only continuing to shrink. The state has lost 1,766 cultivation licenses since the beginning of last year, according to data reported by the California Department of Cannabis Control and the Cannabis Business Times. Low wholesale prices and high taxes have made it almost impossible for operators to run a profitable small business, pot industry insiders say. The fleeing farms are reducing the total amount of space licensed to produce cannabis in California. The state has lost 23% of its total legal canopy — the combined size of all legal cannabis grows — since the beginning of 2022, according to Aaron Edelheit, a cannabis investor who analyzes California’s market. That’s over 19 million square feet of cannabis farming that has disappeared over the past year…
Raphael Mechoulam, the “Father of Cannabis Research” who Discovered THC, has Died
Raphael Mechoulam, the Israeli researcher whose work helped to broaden the scientific understanding of cannabis and the compounds that cause the drug's distinctive high, has died. Mechoulam, who was 92, died in Jerusalem early this month, according to American Friends of the Hebrew University. Among Mechoulam's contributions to the field of marijuana studies was the first isolation of the psychoactive compound of the cannabis plant — tetrahydrocannabinol, or THC. His work earned him the nickname "father of cannabis research." He was a "sharp-minded and charismatic pioneer," said Asher Cohen, the president of the Hebrew University of Jerusalem, where Mechoulam had long served on the faculty.

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PsychedeLinks – March 31, 2023

PsychedeLinks is a curated selection of top news stories impacting business, research, and culture in the psychedelics ecosystem, crafted by Emerge Law Group’s groundbreaking Psychedelics Group.

 Emerge’s Hot Take

Medford Company Becomes Second in State to Receive Psilocybin License
In the past week, the Oregon Health Authority issued Oregon’s first two psilocybin manufacturing licenses to Satori Farms PDX and Satya Therapeutics. Next up, the OHA expects to soon issue licenses to facilitators, service centers, and laboratories. But will psilocybin services be in full swing imminently? Probably not. The full psilocybin mushroom growth cycle can take a couple months and a laboratory still needs to be licensed by the OHA to test the first batch of psilocybin mushrooms before the product can make its way to services centers and ultimately consumers. “As we suspected and have reported in the past, the Oregon psilocybin services program is slow to grow but based on the concerns being voiced, I remain hopeful that people in this space are committed to building an affordable and sustainable program,” says Emerge attorney Kaci Hohmann. Patience…it’s a virtue.

 Other Noteworthy News

Market Battle Lines are Being Drawn in Psychedelics – But What are the Warring Camps Really Fighting About?
“Advocates are understandably concerned that patents will be used to withhold medicine from people who need it. If these biotech businesses try to be rent-seekers of the entire industry, it will go about as well for them as it’s gone for corporate cannabis. Despite their mutual antipathy, I would argue that cultivators making small-batch chocolates and billion-dollar corporate entities do actually have something in common: they’re all incentivized to paint psychedelics as a miracle cure-all. Psychedelics’ potential is genuinely awe-inspiring — but as a long-time supplement manufacturer, I can assure you there are no magic bullets for physical or mental health. These psychoactive compounds are tools for change, not the change itself — and overstating their capabilities does consumers a disservice. When Oregon legalized recreational psilocybin use but required it to be consumed with a licensed guide, critics accused them of gatekeeping — but psychiatrist Richard A. Friedman applauded the choice. “Reshaping your mind isn’t always a great idea,” he argued in a recent Atlantic piece titled ‘Psychedelics Open Your Brain. You Might Not Like What Falls In.’ Clearly, big businesses shouldn’t be allowed to “own” plant medicines that have been used for millennia. But reasonable people with honorable motives can differ on some of these other issues, from regulating therapeutic training standards to what we should teach consumers to expect from psychedelic experiences. We can rail against the corporate water that’s flooding the psychedelic ship — or we can all grab a bucket and start bailing. We can also model responsibility in this space by not overpromising on psychedelics or misleading consumers into thinking they’re a magic antidote to all that ails us.”
Field Trip’s Downfall: Too Early, Too Aggressive, Too Extravagant?
“From the get-go, Field Trip made it clear that they would pursue an aggressive growth strategy, planning to open seventy-five clinics by 2024. But, there’s the kicker: Field Trip’s services were out of pocket, there was no reimbursement from insurance companies. There’s a limited pool of folks that would be able to afford Field Trip’s treatments, then. Self-styled psychedelic clinics like Field Trip were also a bit off in their forecasts of when psychedelics like MDMA and psilocybin might be approved. This confluence of factors has been punctuated by a cooled-off market that’s seen a significantly increased cost of capital. To be honest, Field Trip’s remarkable fundraising stint will likely be viewed in hindsight as an artefact of a frothy, hype-fueled early psychedelics market.”
Some Colorado Communities Don’t Want Psychedelic Healing Centers – But Can They Stop Them?
““Proposition 122 specifically prohibits local bans,” said state Sen. Steve Fenberg, a Boulder Democrat and the Senate president. “So a municipality can’t ban — but it can regulate time, place and manner.” Despite the ballot measure’s explicit prohibition on local opt-outs on psilocybin healing centers, municipal and county leaders from the Kansas line to the Utah line are intent on inserting as much local control as they can into whatever psychedelics-related legislation emerges at the state House this spring. The refrain at the Colorado Municipal League’s annual legislative workshop in Denver in February was clear: regulate mushrooms like marijuana. “Colorado has established a precedent with marijuana that allows Colorado communities to choose whether, and to what degree, they want to allow controlled substances in their communities,” league executive director Kevin Bommer said. “That precedent has been working well for state and local governments, but Prop 122 deviates from this model.” The jostling over the introduction of magic mushrooms is just the latest clash in a long-running dispute over what power and authority belongs to Colorado’s cities and counties versus the state. Cokedale Trustee Bob Holman said there are many specialty healthcare services that are simply not available to residents in rural areas of the state and psychedelics shouldn’t get special status. But backers of Prop 122 are adamant that their measure not get watered down. In February, proponents of psychedelic medicine faced off with state lawmakers in a legislative town hall in Boulder to demand that the General Assembly not gut the spirit of what voters passed.”
Hawaii Health Department Says Legalizing Psychedelics Is a ‘More Meaningful’ Step Than Creating a Study Group
“The Hawaii Department of Health (DOH) says that it would be prudent for the state to legalize certain psychedelics like psilocybin and MDMA to prepare for a likely federal policy change allowing their use for medical treatment. At a hearing before the Senate Health and Human Services Committee last week, DOH testified on a pair of resolutions that call for the establishment of an advisory council to study and make recommendations on approving psychedelic medicines. Members of the panel ultimately deferred action on the legislation, but there are other psychedelics bills advancing in the legislature this session, including one to create an advisory council to look into possible regulations to provide access to federal “breakthrough therapies” like psilocybin and MDMA. During last week’s Senate hearing, a DOH representative said that the department is neutral on the separate resolutions being considered by the committee, adding that he didn’t think the department would be the appropriate body to oversee the proposed advisory council. He also said that it might not necessarily make sense to form such a council to advise on possible therapeutic uses for psilocybin and MDMA given that the federal Food and Drug Administration (FDA) seems poised to authorize their use within “half a year” after designating them as “breakthrough therapies.”

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Copyright Office Guidance Regarding Artificial Intelligence

Author: Sean Clancy*, Shareholder

Understanding copyright law in the age of artificial intelligence can be complex and confusing.  And it will continue to be complex and confusing.  But on March 16, 2023, the United States Copyright Office (the “Office”) published some guidance regarding its plans to handle copyright registration for works containing AI-generated materials.  The Office also intends to seek public input this year on additional topics, including how the law should apply to the use of copyrighted works in AI training.

The Office has identified three main questions to consider: (1) Is the output protectable under copyright? (2) Are generative works with human authorship elements eligible for registration? (3) What information should be disclosed to the Office when registering?

It is well-established that copyright can protect only material that is the product of human creativity. Most fundamentally, the term “author,” which is used in both the Constitution and the Copyright Act, excludes non-humans.

While the Office will examine works with AI-generated materials on a case-by-case basis, they have emphasized that the traditional human authorship requirement still stands. If a work’s authorship elements were produced entirely by a machine, without any human creative input, then the Office will not register it. However, if a human had creative control over the work’s expression and actually formed the traditional elements for an original work of creative authorship, then the work may be eligible for registration.

In the case of works containing AI-generated material, the Office will consider whether the AI contributions are the result of “mechanical reproduction” or if the human author gave visible form to their “own original mental conception.” In other words,  the extent of human creative control over the work’s expression will be a determining factor.  The Office provides this example:

[W]hen an AI technology receives solely a prompt from a human and produces complex written, visual, or musical works in response, the “traditional elements of authorship” are determined and executed by the technology—not the human user. Based on the Office’s understanding of the generative AI technologies currently available, users do not exercise ultimate creative control over how such systems interpret prompts and generate material. Instead, these prompts function more like instructions to a commissioned artist—they identify what the prompter wishes to have depicted, but the machine determines how those instructions are implemented in its output. […] When an AI technology determines the expressive elements of its output, the generated material is not the product of human authorship. As a result, that material is not protected by copyright and must be disclaimed in a registration application.

The Office also stresses that applicants have a duty to disclose any AI-generated content contained within their work. They advise applicants to use the “Limitation of Claim” section to exclude AI-generated content that is significant, more than “de minimis.” If an applicant is unsure, they can disclose as a general statement and the Office will contact them for more information.

Notably, previously registered works with AI-generated content must be updated. If a registration is found to contain AI-generated materials that were not previously disclosed, it may be cancelled.

Emerge Law Group’s intellectual property attorneys continue to monitor new factual and legal developments involving AI and copyright, including future guidance from the Office about this powerful new technology.

*The author generated this text in part with Chat-GPT, OpenAI’s large-scale language-generation model. Upon generating draft language, the author reviewed, edited, and revised the language to conform to his own preferences and style and takes ultimate responsibility for the content of this publication.
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CannaBeat – March 24, 2023

CannaBeat is a curated biweekly selection of top news stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

With Cannabis Cultivator Cap Lifted, Growers Face New Jersey’s Challenges

After a short and fast 2-year state license cap, there is no longer any limit on the number of cultivation licenses in New Jersey. As the industry continues to expand, New Jersey cannabis operators face the same hurdles as operators in other states. First, and what seems to be a problem across many states, a majority of municipalities have “opted out” of permitting cannabis businesses. This fuels the next issue: real estate. With few jurisdictions permitting operators, there are very limited spaces to set up their operations and sell product. Lastly, one of the original and biggest hurdles: raising capital. Many investors have seen the roller coaster of the cannabis industry in other states and can be hesitant to invest in this new market. Unfortunately, it looks like deja vu. California, for example, faces very similar issues; a majority of jurisdictions have banned commercial activity, the market is limited, and capital is hard to come by. After 27 years since the first legalization of medical cannabis, operators are fighting harder than ever to stay afloat. Emerge shareholder Duncan Delano of New Jersey opines: “Challenges are inevitable. But I continue to be impressed by the tenacity and resourcefulness of our clients in New Jersey and New York, as their options open up. The industry here is developing at light speed.”

Other Noteworthy News

Treasury Secretary Says Regulators Are “Looking For Solutions” to Marijuana Banking Problem As Schumer Recommits To Addressing the Issue
As Senate Majority Leader Chuck Schumer (D-NY) renews his commitment to tackling marijuana banking reform this year, the head of the U.S. Treasury Department says that regulators are also exploring options to address the issue. During a hearing before the Senate Finance Committee on Thursday, Sen. Michael Bennet (D-CO) pressed Treasury Secretary Janet Yellen about the fact that the cannabis industry lacks access to traditional financial services under prohibition. The senator argued that marijuana as a commodity is more “stable” than cryptocurrency, yet banking regulations have allowed for large investments in the latter that ultimately contributed to the collapse of at least one bank this month. Yellen replied by saying that, “as you pointed out, in the case of marijuana, it is against federal law, and that’s a barrier, unfortunately, to appropriate banking services for the industry.” “It’s something the regulators have been looking for solutions to,” she said…….
Coalition Sues NY Marijuana Regulations To Open Licensing Process
A coalition of medical marijuana license holders and recreational market hopefuls have filed a lawsuit in state Supreme Court seeking to force New York’s Office of Cannabis Management to open the retail licensing process “for all applicants immediately.”
The slow rollout of licensing for entrepreneurs beyond those with a documented marijuana conviction in their family has angered small business owners who thought they would have an earlier shot at one of the state’s first retail sales licenses, including those defined under the law as “social equity” applicants. It has also frustrated large companies that entered the market early but are still permitted to sell only to certified medical patients. The challengers argue that equal access to the first recreational licensing process should have been available to them under the state’s 2021 cannabis law, which specifies that “the initial adult-use cannabis retail dispensary license application period shall be opened for all applicants at the same time.” The lawsuit, filed in Albany, claims that by creating limited, “conditional” licensing categories that opened prior to the general process, regulators have “overstepped their rule-making authority” and subverted legislators’ intent. The agency’s “arbitrary and capricious foray into legislative policymaking has harmed those individuals the (cannabis law) was designed to benefit ... and diverted (regulators’) attention from the enforcement tasks” that the law requires, according to the court petition…….
Kentucky Senate Passes Bill to Legalize Medical Marijuana
The Kentucky Senate voted Thursday to legalize medical marijuana in the state, delivering a breakthrough endorsement after years of resisting access to cannabis for people suffering from a series of debilitating illnesses. The measure was passed by the Senate on a 26-11 vote, sending it the House, which has supported medical cannabis measures in the past. Republicans have supermajorities in both chambers. “This is one of those issues where you take out the ledger and you list the pros and cons,” said Republican Sen. Stephen West, the bill's lead sponsor. "And it’s a long list on both sides. But for me personally, the pros outweigh the cons.” Republican Sen. Gary Boswell opposed the bill, referring to cannabis as “a drug, not a medicine.” He said the qualifying medical categories listed in the measure are “too broad.” The dramatic vote came before lawmakers started an extended break to give Gov. Andy Beshear time to consider signing or vetoing the stacks of bills sent to him. The House can take up the medical marijuana proposal in late March, when lawmakers will reconvene for the final two days of this year's legislative session…..
Las Vegas Unveils Unusual First Cannabis Residency
Adult freedom and indulging in multiple pleasures have been Las Vegas themes ever since gambling was legalized again in Nevada on March 19, 1931. Gambling had been outlawed in 1910 after being a legal activity, but Sin City has enjoyed 92 years of living on the edge since gaming became legal again. Las Vegas Convention and Visitors Authority in 2020 adopted a new variation of its former catchphrase "What Happens Here, Stays Here," which Sin City began promoting in one of marketing's most successful advertising campaigns in 2003. The new slogan for tourism adopted in January 2020 is: "What Happens Here, Only Happens Here." The catchphrase might suggest anything goes in Sin City, but among the vices remaining illegal on Las Vegas Strip are prostitution, though sex-for-hire is legal in some parts of Nevada, and smoking pot. You can't legally smoke pot in public in Las Vegas, though you can possess cannabis and legally smoke it in a private residence.
Cannabis Brands Products Steeped In Nostalgia Aim To Attract Generational Consumers
Products Steeped In Nostalgia Aim To Attract Generational Consumers
https://mjbizdaily.com/cannabis-brands-products-steeped-in-nostalgia-aim-to-attract-generational-consumers/
Cannabis companies nationwide are infusing a heavy dose of nostalgia in their products and building brands based on fond memories, good times and the soundtracks of some of our formative years. Resurrecting defunct record labels, rock-band encores and cult-classic throwbacks are all part of the remix. Other forms of entertainment are finding wild success and new audiences with blasts from the past, evident at the box office and streaming services. “Top Gun: Maverick,” a near carbon copy of the original, was nominated for five Academy Awards, including Best Picture after grossing nearly $1.5 billion. Metallica’s 1986 masterpiece, “Master of Puppets,” the title track of the band’s third album, climbed into Spotify’s Top 10 most-played songs last year after playing a key element in the popular Netflix series “Stranger Things,” which introduced throngs of younger listeners to the metal icons. The comedy duo Steve Martin and Martin Short, who first paired up in the 1986 movie “Three Amigos!” have hit streaming gold on Hulu’s “Only Murders in the Building,” joining other contemporaries of that era finding new life in the digital era, including another comeback story for the Karate Kid in Netflix’s “Cobra Kai.” Nostalgia not only evokes positive memories, belonging and coming of age, research has shown it affects consumer behavior and increases purchases……

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PsychedeLinks – March 17, 2023

PsychedeLinks is a curated selection of top news stories impacting business, research, and culture in the psychedelics ecosystem, crafted by Emerge Law Group’s groundbreaking Psychedelics Group.

 Emerge’s Hot Take

Oregon Closer to Magic Mushroom Therapy, But Has Setback
Last week, more than 100 future Oregon facilitators graduated from InnerTrek’s psilocybin facilitator training program. Congrats to those students! Soon enough those facilitators will be licensed by the Oregon Health Authority (OHA) and ready to provide psilocybin services to clients. But without any currently licensed OHA services centers or manufacturers, there are no clients for facilitators to guide and no psilocybin products to administer. It’s a classic chicken and egg scenario. It isn’t clear yet how many service centers will be licensed and operational by the end of the year and many facilitators may be without a job for longer than initially anticipated. “The service center to facilitator ratio may be out of whack for quite some time. So, facilitators will be forced to wait it out, apply for service center licenses of their own to address the bottleneck, or maybe even turn (or return) to the underground,” says Emerge attorney Kaci Hohmann.

 Other Noteworthy News

Psychedelics Could Revolutionize Couples Therapy
“Proponents of psychedelic use expect the U.S. Food and Drug Administration (FDA) to approve MDMA as a treatment for post-traumatic stress disorder (PTSD) within the next two years. If that happens, it could potentially open the door to other therapeutic uses of the drug—possibly including couples therapy. Research on MDMA in couples therapy is limited, but the practice has a long history. Some therapists legally used MDMA in couples counseling in the 1970s and 1980s. Effective as they can be, though, experts say it’s a mistake to think that psychedelics offer a one-way ticket to marital bliss.”
Vermont Legislators File Four Bills that Would Legalize Psychedelics and Decriminalize All Drugs
“Four major drug reform bills have been introduced in the Vermont State Legislature to decriminalize simple possession of all drugs, expand harm reduction services, remove criminal penalties for using and selling psilocybin and decriminalize certain psychedelic plants and fungi. Nearly a third of their 150-member House of Representatives have co-sponsored H.423, an all-drug decriminalization legislation sponsored by Reps. Logan Nicoll (D) and Taylor Small (P/D). Rep. Vyhovsky (P/D) has joined forces with ten other senators on the S.119 companion bill, making Vermont on its way to becoming the promised psychedelics land. H.439, sponsored by Rep. Brian Cina (P/D), would completely decriminalize psilocybin, mescaline and peyote in Vermont by removing them from Vermont's definition of hallucinogenic drugs. S.114 ,the other proposed bill by Sen. Martine Gulick (D) would not only remove the famed psilocybin mushroom from Vermont's drug classification, but also take an entire step above her colleague's effort to create a working group dedicated to studying the potential physical and mental health benefits of these substances. The specific psilocybin bill has been assigned to the Senate Health and Welfare Committee for deliberation, while all other related bills have been referred to their respective chamber's judiciary committee.”
Washington Senate Approves Scaled-Down Psilocybin Bill to Prepare State for Future Psychedelic Services
“The Washington State Senate has approved a bill to create a task force promoting research into psilocybin and developing a pathway for legal access to the psychedelic.
The legislation from Sen. Jesse Salomon (D)—which was effectively gutted in an earlier Senate committee to exclude original regulated access provisions—cleared the full chamber in a 41-7 vote on Tuesday. It now heads to the House. Senate Democrats cheered the passage, but advocates remain disappointed about the extent to which the bill was watered down in committee. That 81-page bill was reduced to an eight-page bill mandating the formation of a task force to explore regulatory pathways for the psychedelic in the future. It’s possible, of course, that House lawmakers may seek to further amend it in their chamber.”
Colorado’s Proposition 122: Too Soon for the Mushroom Boom?
“Is Colorado's passage of Prop. 122 a bridge too far for federal law enforcement? We have yet to see what the federal government's enforcement position will be with regard to legalizing magic mushrooms, much less DMT or Mescaline. Will the Department of Justice sit back and allow states to continue to legalize other Schedule 1 Controlled Substances without some federal interference? Alternatively, will Merrick Garland's Department of Justice issue a "mushroom memorandum" akin to the now-rescinded Cole Memorandum of 2013 for cannabis? As they say, history is often bound to be repeated. While Psilocybin may have a faster federal legalization trajectory than cannabis has, Colorado is wise to create a robust regulatory framework to stave off possible federal enforcement of the Controlled Substances Act. Industry participants need to understand the potential risks, and armed with a hefty dose of risk tolerance, seriously address compliance with state law. Is it too soon for a mushroom boom? We will have to wait and see.”
Vancouver Company Inks MDMA and Psilocybin Distribution Agreement in Australia
“Vancouver-based drug manufacturer and formulator Optimi Health has signed a distribution agreement to supply the Australian market with its MDMA formulation and psilocybin capsules. The products will be exported to Australia by July 1, 2023, when authorized psychiatrists can begin prescribing MDMA and psilocybin for specific mental health conditions. The distribution agreement is with Mind Medicine Australia (MMA), a leading charitable organization and patient advocacy group seeking to expand access to legal psychedelic-assisted therapies, and marks Optimi Health’s first international MDMA and psilocybin sale. All products destined for the Australian market will be manufactured, encapsulated and packaged inside Optimi’s facility under GMP-compliant protocols, and will follow Health Canada’s controlled substances export laws. To provide equitable access to its products, Optimi will allocate a percentage of product sales towards a fund managed by MMA to assist low-income earners and others who face systemic barriers to access, with those details to be announced in the coming weeks.”

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CannaBeat – March 10, 2023

CannaBeat is a curated biweekly selection of top news stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

Emerald Triangle Communities Were Built On Cannabis. Legalization Has Pushed Them To the Brink

Legalization in California seemed like a dream come true for the cannabis industry, home of the Emerald Triangle. Abide by the rules and regulations in exchange for the opportunity to have a legal business. Six years later, and the price of cannabis is unbelievably low, businesses are closing, and the illegal market is flourishing. According to coverage by HighTimes and Forbes, cannabis sales declined in 2022, and many believe it wasn’t because people were consuming less.

The Emerald Tringle seems to be hit the hardest as cannabis is a base for much the community’s economy. Farmers in Humboldt reported that even though they sold all their product, they come in at loss for the year. Farm closures reverberate throughout Trinity County. Local businesses that depended on the patronage of the famers and their employees are laying people off and cutting hours. Some have lost so much revenue that they may close. In Mendocino, it is estimated that nearly 70% of operators might not remain in the legal market.

Besides overregulation, two major culprits are said to be the roots of the larger issues within the industry: high taxes and lack of shelf space. In attempt to fix the first problem, the State eliminated the cultivation tax in July of 2022. As for shelf space, 56% (302/539) of California jurisdictions still do not allow any type of commercial cannabis operations. There are only about 1000 licensed dispensaries serving 40 million residents. Delia Rojas of Emerge Law Group says that “the power local jurisdictions hold is frustrating, especially when residents of communities where a majority voted in favor of prop 64 haven’t experienced the product of their vote. Fear still runs rampant in much of the state. Education and advocacy continue to be important to wipe away the stigma surrounding this plant.”

Other Noteworthy News

Mendocino Growers Ask California To Address County’s Cannabis Licensing
A trade association representing cannabis growers in California’s Mendocino County has asked the state government for an “urgent intervention” in the county’s licensing process, citing concerns that many farmers’ license applications won’t be processed by a July 1, 2023, deadline. The Mendocino Cannabis Department and local government have failed to “establish a process capable of moving good-faith cannabis operators towards state annual licensure,” the Mendocino Cannabis Alliance (MCA) claims in a Feb. 8 letter to California Gov. Gavin Newsom and state Department of Cannabis Control Director Nicole Elliott. The letter charges that by the July deadline, the Mendocino Cannabis Department (MCD) will have licensed only 256 “prioritized” marijuana operators in the county, “implying that nearly 70% of Mendocino’s 841 current operators have no path forward to remain in the legal market,” according to an accompanying news release. “Further, among over 500 ‘deprioritized’ operators, MCA has found that a substantial number have been deprioritized incorrectly based on demonstrably false claims of tax delinquency or lack of state licensure.” MCA Executive Director Michael Katz said Mendocino County has “no functional permit program in Mendocino, and no plan to create one.”
Oklahoma Voters Reject Marijuana Legalization Ballot Initiative
Oklahoma voters have rejected a ballot initiative that would have legalized marijuana for adult use in the state on Tuesday. For most counties across the state, the cannabis reform measure—State Question 820—was the only proposal on the ballot, a unique scenario in the history of the legalization movement. Advocates tried to put the reform on the November 2022 ballot, but delays in signature verification by officials and the state Supreme Court’s subsequent decision in litigation meant that it missed the window to qualify for that cycle. In October, Gov. Kevin Stitt (R) called a special election for the cannabis measure that took place on Tuesday.
UConn Launches New Cannabis Cultivation Minor
The University of Connecticut announced a new minor in Cannabis Cultivation for students receiving specialized training in this growing field. “Since we launched the nation’s first cannabis horticulture course, UConn has been a leader in cannabis education and research,” says Indrajeet Chaubey, dean of the College of Agriculture, Health and Natural Resources. “We are thrilled to add another mechanism for students to formalize the skills, knowledge, and expertise in cannabis studies that they gain while at UConn.” Led by professors of plant science Gerald Berkowitz and Matthew DeBacco, the 15-credit minor was formalized in the spring 2023 semester. It provides training in the propagation, cultivation, commercial production, maintenance, processing, and potential markets for and uses of one species of cannabis, Cannabis sativa. As part of the minor, students can receive credit for approved internships with growers and companies to provide students with experiential learning opportunities and exposure to jobs.
Justice Department Website Opens Portal For Those Seeking Presidential Pardon Certificates
After a several month delay, the Justice Department has opened the online application process for those persons eligible to receive certificates indicating that their marijuana-related convictions have been pardoned by the President. The website began accepting applications hours after a notice published in the Federal Register stated that the Office of the Pardon Attorney had “developed the subject form to collect information from potential pardon recipients.” In its notice, the Office estimated that as many as 20,000 people may apply to receive pardon certificates.

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DEA Takes a Rare Step Forward for Telehealth

Author: Matt Brockmeier, Emerge Of Counsel Attorney

The Ryan Haight Online Pharmacy Consumer Protection Act of 2008 (the Act) amended the Controlled Substances Act (CSA) to help prevent the illegal distribution of controlled substances on the internet. The Act required an in-person medical evaluation before prescribing or otherwise dispensing controlled substances online. It also established seven exceptions to that requirement, allowing practitioners to prescribe medications for a patient without first evaluating that patient in person. One exception allowed DEA to waive the in-person requirement during the COVID Public Health Emergency (PHE). During the pandemic several companies began providing large volumes of controlled substances via telehealth under that exception, including ketamine and Adderall. However, the exception it is set to expire on May 11, 2023, threatening the future of the nascent telehealth prescription industry.

Falling within the Act’s definition of the ‘‘practice of telemedicine’’ is ‘‘a practitioner who has obtained from the [DEA Administrator] a special registration under [21 U.S.C. 831(h)].’’ 21 U.S.C. 802(54)(E) contemplates that the DEA must issue regulations to effectuate this special registration provision. In 2017, under President Trump, DEA was statutorily instructed to finalize a rule on the registration’s application process and procedures. Disappointingly, as of this writing, DEA has yet to promulgate “special registration” rules, despite pleas from patients, clinicians, and the medical and business communities.

Analysts familiar with DEA’s intransigence and stall tactics predicted that the expiration of the PHE declaration would devastate the ketamine telehealth industry. In a surprise to most, including this author, on March 1 DEA issued a notice of rulemaking that would authorize telemedicine where 1) the prescribing practitioner has not conducted an in-person medical evaluation with the patient; 2) the prescription was issued pursuant to a telemedicine encounter and 3) the telemedicine encounter results in a prescription for controlled medications. There are some limitations, including that prescribing practitioners could only issue telehealth prescriptions for up to a 30-day supply, and there are labeling and recordkeeping requirements. Nonetheless, this is an encouraging development from an agency with a reputation for being dilatory and obstructionist, especially when it comes to making regulated medicines available to patients in need.

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PsychedeLinks – March 3, 2023

PsychedeLinks is a curated selection of top news stories impacting business, research, and culture in the psychedelics ecosystem, crafted by Emerge Law Group’s groundbreaking Psychedelics Group.

 Emerge’s Hot Take

DEA Proposes New Telemedicine Regulations
The Ryan Haight Online Pharmacy Consumer Protection Act of 2008 (the Act) amended the Controlled Substances Act (CSA) in an attempt to prevent the illegal distribution of controlled substances on the internet. Among other things, the Act required an in-person medical evaluation as a prerequisite to prescribing or otherwise dispensing controlled substances online. One exception allowed DEA to waive the in-person requirement during the COVID Public Health Emergency (PHE). During the pandemic a number of companies began providing a not insignificant volume of controlled substances via telehealth, namely ketamine and Adderall, subject to this exception. However, that exception is set to expire on May 11, 2023, thrusting a nascent industry into uncertainty over the past few months. Analysts familiar with DEA’s intransigence and stall tactics predicted that the ketamine telehealth industry would be devastated by the expiration of the PHE declaration. In a surprise to most, on March 1, 2023, DEA issued a notice of rulemaking that would authorize telemedicine where 1) the prescribing practitioner has not conducted an in-person medical evaluation with the patient; 2) the prescription was issued pursuant to a telemedicine encounter and 3) the telemedicine encounter results in a prescription for controlled medications. There are some limitations, including that prescribing practitioners will only be able to issue telehealth prescriptions for up to a 30-day supply of a controlled substance, and there are labeling and recordkeeping requirements. Some telehealth providers and advocates have concerns about some of the limitations in the DEA’s proposed rules, but for ketamine in general, “this is an encouraging development from an agency that has earned a reputation for being dilatory and obstructionist at times”, says Emerge Of Counsel attorney, Matt Brockmeier.

 Other Noteworthy News

Bill Seeks Personal Data Collection On People Who Use Legal Psilocybin in Oregon
“State Sen. Elizabeth Steiner, D-Portland, wants the state to monitor whether Oregon’s landmark law allowing the controlled use of psilocybin is working as intended — and not just for ‘rich white people.’ The Oregon Senate Health Committee on Monday heard her bill, Senate Bill 303, which would require psilocybin service centers to collect data on the health, education, race, income and other sensitive information of adults that use the hallucinogenic drug under their supervision. Steiner’s bill is in response to concerns that Oregon’s psilocybin program will only be accessible to those who can afford what could be hefty price tags service centers charge. It’s also meant to answer questions about the effectiveness of the first-of-its-kind program, which was pitched to voters as a means to address mental health and included a requirement that a report be issued on safety and efficacy after the first two years. Opponents of the bill argue it will mean another administrative burden that will further drive up the cost of psilocybin sessions. They also say its data collection requirement will have a chilling effect on people who may already be wary of using the federally illegal drug for its purported benefits.”
New Mexico Lawmakers Approve Psilocybin Study Bill
“New Mexico lawmakers advanced legislation on Wednesday to create a state body that would study the possibility of launching a psilocybin therapy program for patients with certain mental health conditions who could benefit from using the psychedelic. The House Health and Human Services approved the bill, sponsored by Rep. Christine Trujillo (D), in a unanimous voice vote. The measure now heads to the House Appropriations & Finance Committee. The legislation would establish an eight-member Psilocybin Advisory Group appointed by the governor that would be responsible for studying and making recommendations on the ‘feasibility’ of creating a psilocybin therapy program. Members would specifically need to consider policies to create a regulatory framework for psilocybin cultivation, manufacturing and dispensing, as well as ‘treatment guidelines for the use of psilocybin-derived products to treat certain mental health issues, including patient selection and provider training and certification.’”
More and More Psychedelic Reform Bills in the Pipeline Throughout United States
“2023 has already shown extensive advances in the realm of psychedelic policy reform. About a dozen states in the US have put forward legislation that would see multiple psychedelic substances from ketamine, MDMA, psilocybin, and more receive downgraded criminalization designations. In addition, lawmakers are as open as ever to the idea of psychedelics’ therapeutic potential. Special task forces or state-sponsored research bodies have been created or are set to be voted on which would seek to properly educate voters and state governing bodies on the possibilities associated with psychedelic therapy. With direct support from the Governor’s office, two new psychedelic research bills have been unanimously approved by Hawaii’s Senate Ways & Means Committee. While not exactly psychedelic policy, an important bill is brewing in Colorado’s state legislature. It would allow cities throughout the state to institute “overdose prevention centers”, similar to those seen in Europe, where citizens could use drugs regardless of their legality in a medically supervised environment.”
Untangling Anorexia: Psychedelics Offer Hope for a Neglected Condition
“Characterised by self-starvation, anorexia nervosa is a psychiatric disorder that mainly affects adolescent women, who become invested in restricting their food intake. A fear of weight gain can morph into a general fear of loss of control. In the past, clinicians have looked to pharmaceuticals for help, but several antidepressants, antipsychotics and nutritional or hormonal supplements have failed in clinical trials[4]. As a result, no medicine has been licensed. Another approach attempts to reset the outlook of a person with anorexia nervosa with psychedelics. Several clinical trials of psilocybin — the active ingredient in magic mushrooms — are underway. ‘If you experience that you can still have life, that you can still have hope, this helps to motivate the patient for further therapy,’ says Hubertus Himmerich, a clinician and researcher at King’s College London, who is leading a trial of psilocybin for anorexia, using ‘COMP360’ tablets of synthesized psilocybin manufactured by COMPASS Pathways. Two other trials of psilocybin therapy for anorexia nervosa are also ongoing.”

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CannaBeat – February 24, 2023

CannaBeat is a curated biweekly selection of top news stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

Twitter Becomes First Social Media Platform To Allow Cannabis Ads In U.S.

On February 15, 2023, Twitter became the first major social media platform to remove their prohibition on the marketing and advertising of cannabis brands and products. Twitter’s announcement describes how they look to expand the opportunities for one of the most influential markets that utilizes its platform for the exchange of ideas, experiences, and overall business development. Naturally, the new opportunity comes with a list of rules and restrictions which can be found on their updated Cannabis Ad Policy. For example, the cannabis business must have the proper license, prohibit targeting anyone under 21, must not use characters, celebrities, or other icons appealing to minors, and can only target jurisdictions where they are legally allowed to operate. The most restrictive and slightly counter-intuitive rule states “advertisers may not promote or offer for sale of cannabis.” This could prove difficult to navigate but not impossible.

Even with these restrictions, Emerge Attorney Delia Rojas believes that “cannabis businesses will seize this opportunity while most other large social media competitors still flat out ban cannabis advertising and deactivate accounts.” It is unquestionable that social media plays a huge role in any businesses’ advertising plan. Forbes reported that some estimate 20 million tweets about cannabis topics were posted in the past year. With 37 states passing some form of cannabis regulatory structure, and more states looking to join the club in 2023, this is a long overdue and applauded step forward.

Other Noteworthy News

WA Senate Passes Bill to Bar Hiring Discrimination For Cannabis Use
Washington employers would be prohibited from refusing to hire a potential worker solely because of a drug test showing they had used cannabis under a bill that passed the state Senate on Wednesday. Washington voters approved recreational marijuana in 2012 through Initiative 502. More than a decade later, though, as more states have moved to legalize the drug, Washington employers can still screen out applicants who use cannabis. If Senate Bill 5123 becomes law, Washington would join several other states that have enacted laws shielding employees from workplace penalties for off-duty cannabis use. The bill passed the state Senate on a 28-21 vote Wednesday, sending it to the House for further consideration. In 2019, Nevada became the first state to stop employers from rejecting an applicant because of a drug test showing cannabis use. Last year, California Gov. Gavin Newsom signed into law a bill barring discrimination in hiring, firing and other conditions of employment if a worker uses cannabis while off duty.
Legalized Marijuana Proposal Unveiled By Iowa Democrats
Marijuana would be legal for recreational use, previous convictions for non-violent possession charges would be removed from an individual’s criminal record, and the state’s medical cannabis program would be expanded under legislation introduced Tuesday by Democratic state lawmakers. The proposal is not likely to become state law any time soon, since Republican state lawmakers in leadership and Gov. Kim Reynolds have in the past opposed any efforts to legalize marijuana in Iowa. Nationally, 21 states have legalized recreational marijuana, including Iowa neighbors Missouri and Illinois. Minnesota state lawmakers are considering legislation to legalize marijuana there. “It is time,” said Iowa Rep. Jennifer Konfrst, a Windsor Heights resident and leader of the minority-party House Democrats. Konfrst argued that legalizing marijuana would keep sales tax revenue in Iowa instead of sending it to other states, it would preserve state resources that currently go toward enforcing marijuana laws, and it would increase the quality of life for Iowans with chronic illnesses.
North Carolina Senate Panel Approves Medical Marijuana Bill
A North Carolina legislative committee on Tuesday approved a bill that would legalize medical marijuana in the state. The measure, known as the North Carolina Compassionate Care Act (Senate Bill 3), was approved by the Senate Judiciary Committee with little debate among senators, according to media reports. The bipartisan bill was filed on January 25 with sponsorship from Republican Sens. Bill Rabon and Michael Lee and their Democratic colleague Sen. Paul Lowe. If passed, the bill would legalize the medicinal use of cannabis for patients with one or more specified qualifying serious medical conditions such as cancer, ALS, Parkinson’s disease, epilepsy, multiple sclerosis, post-traumatic stress disorder and others. Unlike the more comprehensive medical marijuana programs in many other states, however, the bill does not authorize the use of medical marijuana by patients living with chronic pain.
Delta-8 Brouhaha Creates Marijuana Opportunity In Next Federal Farm Bill
If Congress can’t (or won’t) bundle marijuana reform with the F-35 fighter jet and nuclear submarines, why not food stamps and corn subsidies? Among the pressing items on federal lawmakers’ 2023 to-do lists is renewing the Farm Bill. Every five years, the sprawling, multipart, $428 billion monster that deals with nutrition and rural development as well as what American farmers grow and how they grow it is revamped. And the 2018 Farm Bill that legalized hemp and triggered the boom in delta-8 THC and other intoxicating hemp-derived cannabinoids expires in September. Federal marijuana prohibition means the American cannabis industry still exists separately from federal farm programs and the U.S. Department of Agriculture. Despite this, and despite the many other loud and needy lobbies competing for attention, there’s a growing push in Washington DC for Congress to consider marijuana reform during Farm Bill discussions, according to multiple lobbyists and a federal lawmaker who spoke with MJBizDaily.
The Cannabis Experience Becomes First Marijuana-Licensed Consumption Bus
The Cannabis Experience in Denver has become Colorado's -- and the nation's -- first marijuana-licensed consumption bus. As the cannabis industry continues its blazing trail, local marijuana users can enjoy safe, legal cannabis tours, airport transportation and private cannabis-friendly party buses. The Cannabis Experience will offer transportation services to Denver International Airport along with private party bus rentals with food and art themes such as "Toking and Tacos," and "RiNo Mural Tours." The service also provides tours of the city and tourist attractions. "The Cannabis industry is extremely regulated and not diverse. It took us almost a year to become operational, so we are excited to be the country's first safe, legal, licensed mobile hospitality business," Sarah Woodson said. "We are social equity and African American. We will have amazing tours, and grow our fleet over the next 24 months and work on expanding into other local cities such as Aurora. We are helping move the needle forward in the legalization fight. We are proud to be in the cannabis industry." Visits to cannabis grows and dispensaries are also included in the services as bookings are being accepted now for the grand opening, which is set for March 1.

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Critical Terms for Intellectual Property License Agreements (Part 2)

Author: Sean Clancy

An audit provision is a clause in an intellectual property license agreement that provides the right for the licensee (the party receiving the license) or the licensor (the party granting the license) to inspect the records of the other party to verify compliance with the terms of the agreement. This provision is included in intellectual property license agreements to ensure that both parties are complying with the terms of the agreement.

One common reason for an audit is to ensure that the licensee is paying the correct royalty fee. The license agreement will typically specify the amount of royalties that the licensee must pay for the use of the intellectual property. An audit provision gives the licensor the right to inspect the licensee’s records to ensure that the correct royalty fees are being paid. This helps to prevent the licensee from underreporting the amount of royalties owed, which would be a breach of the agreement.

Another reason for an audit is to ensure that the licensee is using the intellectual property in accordance with the terms of the license agreement. For example, if the license agreement restricts the use of the intellectual property to a certain geographic area or market segment, an audit provision can help to ensure that the licensee is not using the intellectual property outside that area. This helps to prevent unauthorized use of the intellectual property.

In addition to protecting the interests of both parties, an audit provision can also help to avoid disputes that may arise under the license agreement. For example, if the licensee disputes the amount of royalties owed, an audit provides a legal right for licensee to review royalty reporting without resorting to a lawsuit. Similarly, if the licensor believes that the licensee is using the intellectual property outside the terms of the agreement, an audit can provide evidence about whether or not a violation is occurring.

It is also important to consider limitations on the use of the audit provision. For example, the audit provision may specify that audits can only be conducted during business hours and with reasonable advance notice. Additionally, the frequency of audits may be limited to prevent excessive intrusion into the licensee’s business.

An audit provision is another critical component of an intellectual property license agreement. It provides a means for verifying compliance with the terms of the agreement, resolving disputes, and preventing unauthorized use of the intellectual property. The inclusion of an audit provision in an intellectual property license agreement helps to protect the interests of both parties and ensures that the license agreement is properly enforced.

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FRANCHISE LAW

Franchisors

Franchise law is a heavily regulated area of law.  We help clients expand their businesses through franchising and other distribution methods. We have experience in many industries including, restaurants, health, and beauty, alcohol, and cannabis among others. Our representative services include the following:

Franchisees

We also help potential franchisees interested in buying a franchise. We are able to assist with evaluation of franchise opportunities with respect to:

Alternative Structures

However, not all businesses are suited to franchise. We are also experienced with helping clients structure alternative distribution methods to prevent classification as a franchise.

MERGERS AND ACQUISITIONS

Our M&A attorneys are highly experienced in counseling clients who are considering acquisitions or exit strategies.  We have many years of experience handling deals of various types and sizes, ranging from sales of small closely-held business, private companies, and publicly-traded corporations.  We have represented business owners, private equity firms and investment banks in a wide range of industries. 

We have a deep business bench, and Emerge attorneys have handled transactions of all shapes and sizes.  Whether your deal is valued at $100,000 or $100,000,000, our experienced attorneys will guide you through the deal process.

We understand the intensity, technical skill and judgment needed to get deals done, and we provide our clients with timely, practical and cost-effective legal advice.  We are highly capable in all aspects of M&A, including the following:

CANNABIS INDUSTRY

Emerge Law Group is highly experienced in the cannabis industry.  We have helped many clients obtain state licenses and local permits to operate cannabis businesses throughout California, Oregon, and Washington.

Emerge attorneys were instrumental in the drafting and passage of Oregon Measure 91, legalizing marijuana in the State of Oregon, and have represented cannabis businesses well before many law firms were willing to enter the cannabis industry. As a firm that has provided legal services in the cannabis space for many years, we are familiar with the unique and complex issues businesses and individuals face in an emerging and highly regulated industry.

We regularly help clients with:

Cannabis laws and rules are also regularly changing.  Members of our team are dedicated to attending legislative hearings, state agency and local city and county meetings to stay up-to-date on any new changes and how to adjust to any new changes.

See our Cannabis Industry page for more information.

PSYCHEDELICS

There is tremendous excitement about the potential for psychedelic drugs to benefit a wide variety of populations, including terminally ill patients suffering with anxiety and depression. Until recently, psychedelic substances have been accessible only in the illicit market and are illegal under federal and state to manufacture, distribute, or possess. These substances have, since 1970, been treated as having no legitimate medical use, and no commercial application. As such, no one invested in this area or required legal services, outside of the criminal context.

Today, researchers in a multitude of clinical studies are proving the medical safety and efficacy of these medicines, with the objective of changing the treatment of these substances under the Controlled Substances Act. Companies are now actively raising money to develop intellectual property and seize market opportunities associated with psychedelic drugs.

In addition, advocates at the state and local levels are not waiting for the rescheduling of these substances and are active in undertaking efforts to decriminalize these substances and/or make them affirmatively legal under state and/or municipal law. Decriminalization already has occurred in cities including Denver, Oakland, Santa Cruz, and Ann Arbor. Oregon is poised to be the first state to make psilocybin therapy affirmatively legal. Emerge Law Group is working with a wide array of clients pushing forward in this emerging area.

See our Psychedelics Practice Group page for more information.

TAXATION

CORPORATE AND PARTNERSHIP TAX

Businesses of all kinds benefit from a customized but systematic approach to structuring legal relationships. Emerge Law Group helps businesses and business owners with a variety of tax planning matters.

Representative client services include:

ESTATE PLANNING

Estate planning encompasses everything from a will and power of attorney to combined estate and business succession planning. In almost all cases, the purpose of the plan is to help the client protect those they care about most in the event they can no longer be there for them.

Emerge Law Group has experience with a wide range of tools used in estate planning, including wills, trusts, and family business entity planning.

TAX CONTROVERSIES

Emerge Law Group can assist with the resolution of difficult tax controversies. Our areas of emphasis and experience include:

REAL ESTATE TRANSACTIONS

Emerge Law Group assists clients with a wide range of real estate transactional matters.  We regularly help clients with:

LAND USE

Emerge Law Group also assists clients with all aspects of local government land use and development processes, ranging from preliminary property analyses and building permit issues to complex land use reviews and hearings. Our attorneys are experienced in obtaining land use entitlements and development permits for a wide range of uses.

We regularly help clients with:

Above all, we understand the value of working with cities and counties to enhance communities while developing the land to its potential. We strive to create solutions to land use issues that serve to better our clients and the communities in which they live and work.

LITIGATION AND ALTERNATIVE DISPUTE RESOLUTION

The attorneys in Emerge Law Group’s Litigation and Alternative Dispute Resolution practice group litigate commercial, intellectual property, and public interest matters in state and federal courts, as well as private mediation and arbitration proceedings.  Our lawyers have represented national and regional financial institutions, major media, entertainment and technology companies, and other Fortune 500 companies in a broad array of high-stakes disputes.  Our team of litigators has handled leading cases that have shaped the law in cutting-edge business, technology, free speech, and public interest impact lawsuits in trial and the courts of appeal.

We have particular expertise in handling civil litigation and regulatory enforcement matters in the cannabis and psychedelic industries.  While many firms claim expertise in the these industries, few have our depth of experience successfully litigating contract, trademark, partnership, shareholder, land use, and real estate disputes in court and arbitration.  Even fewer firms have our level of experience handling writ of mandate proceedings against the government regulators.

Our litigators practice in California, Oregon, and Washington, but have appeared in state and federal courts nationwide.  Our knowledge of our clients’ businesses, goals and concerns, and our experience litigating at the highest levels, give us unique insight into possible outcomes and pitfalls as we continuously confront issues of new impression.

No matter what the industry, we pride ourselves in achieving our clients’ objectives through efficient and creative solutions primarily designed to avoid disputes in the first place—which is always the best litigation strategy.  Many times, our clients obtain excellent outcomes before or at the earliest stages of litigation because our adversaries quickly recognize the challenges they will face in litigating against us.  When litigation is unavoidable, however, we work hard to provide our clients with both cost-efficient and “big firm” quality representation.

 

INTELLECTUAL PROPERTY

Your intellectual property (or “IP”) strategy can harness your most valuable information and intangible assets including your name, your brand, your designs, your content, your services, and your products — what makes your business stand apart in a competitive world.  We can help you evaluate and build your IP portfolio, then secure it, monetize it, and protect it.

IP encompasses multiple areas of law and different types of information or material.

Our Intellectual Property practice focuses on:

TRADEMARK

Trademarks include names, signs, logos, designs, phrases, slogans, expressions, and sometimes even colors, sounds, or smells that identify or distinguish one business compared to others.  Trademark protection is fundamental in securing your “brand.”

COPYRIGHT

Copyright covers original works of creative authorship fixed in a tangible medium of expression.  This includes literary, dramatic, musical, and artistic works, such as poetry, novels, designs, movies, songs, computer software, and architecture. Copyright does not protect facts, ideas, systems, or methods of operation, although it may protect the way these things are expressed.  Depending upon the type of work, “moral rights” (such as the right of attribution) may be implicated as well.

TRADE SECRET

Trade secret laws can vary somewhat between states, but generally trade secrets cover information, including drawings, cost data, customer lists, formulas, recipes, patterns, compilations, programs, devices, methods, techniques or processes that derive economic value from not being generally known and are the subject of efforts that are “reasonable under the circumstances” to maintain secrecy.

PRIVACY

Depending upon where you live or operate, there is a special patchwork of laws and regulations that protect and regulate personal information.  If you are handling or giving out personal or potentially sensitive information, you may be implicating privacy laws.

PUBLICITY

Publicity rights address the commercial use of an individual’s face, name, image, or likeness.  These rights vary state-to-state.  Marilyn Monroe, for example, lived in multiple states which created complex questions about her publicity rights.

Our Intellectual Property services include:

FINANCIAL INSTITUTIONS

In states where new cannabis banking opportunities exist, Emerge Law Group has the proven expertise in creating canna-banking programs to efficiently capitalize on those opportunities. Our Banking Practice Group specializes in working with banks and credit unions to develop regulatory compliant programs and operational best practices. We also train banking staff to become experts in canna-banking so they can effective understand and manage the risk affiliated with canna-banking.

We regularly help clients with:

EMPLOYMENT LAW

At Emerge Law Group, we recognize that employees are the heart and soul of any successful business.  Our Employment Law Practice Group works with employers to help them effectively manage their workforce, navigate the complex web of federal, state and local employment laws and, if necessary, defend against claims before administrative agencies and in court.

We regularly help clients with:

CORPORATE FINANCE AND SECURITIES

Our corporate finance and securities lawyers are experienced attorneys who have practiced at large law firms, worked as in-house counsel for public companies and investment banks, and owned and operated start-up companies. We work with clients to help achieve their financing goals while safely navigating the highly technical securities law landscape. 

In addition to representing issuers, we also routinely represent institutional and individual investors, including in connection with fund formation and investments.

Our expertise includes:

We have a deep understanding of the financing options available to businesses, including simple unsecured loans, asset-backed financing, convertible debt, common and preferred equity, crowdfunding and various other structures.  We work closely with our clients to understand their business and financing needs, ensure they are prepared to approach investors and choose the right partners, structure and negotiate terms, navigate the due diligence process and successfully close the deal.

COMPLIANCE AND LICENSING

ALCOHOL AND BEVERAGE INDUSTRY

Emerge attorneys have represented businesses in the alcohol and beverage industry, including wineries, breweries, distilleries, restaurants, bars, movie theaters, golf courses, and gas stations.  We can help you vet new locations, acquire existing locations, and apply for the appropriate liquor license.  We also provide training to comply with applicable rules and regulations, prepare operating procedures, submit renewals, and keep clients protected in the event of any potential violations or administrative hearings.

CANNABIS INDUSTRY

Emerge Law Group is highly experienced in the cannabis industry.  We have helped many clients obtain state licenses and local permits to operate cannabis businesses throughout California, Oregon, and Washington.  We regularly help clients with:

Cannabis laws and rules are also regularly changing.  Members of our team are dedicated to attending legislative hearings, state agency and local city and county meetings to stay up-to-date on any new changes and how to adjust to any new changes.

See our Cannabis Industry page for more information.

PSYCHEDELICS INDUSTRY

Emerge Law Group is a leader in the psychedelics industry.  There is tremendous excitement about the potential for psychedelic drugs to benefit a wide variety of populations, including veterans struggling with PTSD and terminally ill patients suffering with anxiety and depression.  Until recently, psychedelic substances have been accessible only in the underground; they are illegal under state and federal law to manufacture, distribute, or possess.  These substances have, since 1970, been treated as having no legitimate medical use, and no commercial application.  As such, businesses have not invested in this area or required legal services, outside of the criminal context.

Today, psychedelics are proceeding toward legalization on multiple paths.  Researchers in a multitude of clinical studies are proving the medical safety and efficacy of these medicines, with the objective of changing the treatment of these substances under the federal Controlled Substances Act, opening legal access to them.  Private and public companies are now actively raising money to develop intellectual property and capitalize on the market opportunities associated with psychedelic drugs.  Opportunities to be early actors in this new arena are tremendous.

See our Psychedelics Practice Group page for more information.

BUSINESS AND CORPORATE

Our business transactions team is made up of highly experienced transactional attorneys who have practiced at large law and accounting firms, worked as in-house counsel for public companies and investment banks, and owned and operated start-up companies. We understand complex legal matters and provide high quality legal services in a cost-effective manner.  Our clients value our experience, knowledge and judgment.

ENTITY FORMATION

Our team routinely advises clients regarding:

CORPORATE GOVERNANCE

Emerge attorneys also advise on-going concerns with: