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Trademark applicants – beware spoofed calls that impersonate the USPTO

Scammers have recently started calling trademark customers and falsely claiming to be an employee with the United States Patent and Trademark Office (USPTO). The scammers use a tactic called “spoofing,” where they trick phone networks into displaying a fraudulent name, number, and location. They’re trying to trick you into believing you’re talking to the USPTO, so they can steal money or personal information from you.

If you receive a call from someone you suspect is a scammer, do not give them any personal identifying or payment information. The USPTO will never ask for your personal or payment information over the phone.

If you ever have questions about the status of trademark applications or your trademark rights, reach out to Emerge Law Group intellectual property practice group chair, Sean Clancy.

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PsychedeLinks – February 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

Regulatory Hurdles Challenge Oregon Psilocybin Providers
Emerge attorneys, Dave Kopilak and Kaci Hohmann, are quoted in this Lucid News article along with other key individuals in the Oregon psilocybin services world. Ranging from insurance to land use to business realities, the article touches on the primary legal concerns facing prospective psilocybin business owners. In a public records request, the Oregon Health Authority disclosed that as of January 27, 2023, applications have been submitted for 6 manufacturer licenses, 3 service center licenses, and 1 laboratory license. These numbers reflect the contemplative approach that many prospective psilocybin business owners are taking in Oregon. As we progress through the year, we anticipate a moderate surge in license applications. Until then, we just have to wait to see how things shake out. As Dave mentions in the article, there is a concern that there may be too many facilitators and not enough service centers, at least at the outset. “I hope it will eventually stabilize into a sustainable, thriving ecosystem,” he says.

 Other Noteworthy News

Psychedelics Bills Filed in Four More States as 2023 Reform Efforts Heat Up
“Another series of psychedelics reform bills have been introduced in states from New Hampshire to Hawaii, building on the movement that’s seen exceptional activity in the 2023 session. Sen. Ron Kouchi (D) [in Hawaii] filed a bill to create a “therapeutic psilocybin working group” that would be tasked with studying the “medicinal and therapeutic effects of psilocybin or psilocybin-based products” for conditions such as anxiety, depression and post-traumatic stress disorder (PTSD). The body would also need to look into the efficacy of therapeutic psilocybin programs that are being implemented in Colorado and Oregon. A bill from Rep. Matthew Santonastaso (R) [in New Hampshire] would simply remove the psychedelic DMT from the list of controlled substances under state statute. A Republican New Hampshire lawmaker also recently filed a bill to legalize the possession and use of psychedelics like psilocybin and LSD by adults 21 and older. Sen. Nathalia Fernandez (D) [in New York] has filed a bill to legalize psilocybin therapy for patients with qualifying conditions. Under the proposal, people could receive psilocybin treatment from a certified facilitator in a clinical setting, or at their home if they’re unable to travel. In Utah, Senate Minority Leader Luz Escamilla (D) has announced plans to soon file legislation to legalize psilocybin for people with serious mental health conditions. In West Virginia, Rep. Kayla Young (D) filed a bill that would simply remove psilocybin, marijuana and THC from the state’s list of controlled substances.”
Colorado Appoints Natural Medicine Advisory Board to Share Psychedelic Program
“On Friday, Governor Jared Polis announced members of the Colorado Natural Medicine Advisory Board. This fifteen-member board sits within the Department of Regulatory Agencies (DORA), where it will advise regulators drafting rules for the state’s psilocybin program. The board consists of two types of appointees. The first group will serve two-year terms, and the second will serve four-year terms. All but one of the appointed members reside in Colorado. At least on the surface, few board members appear to have experience directly related to psychedelics. Several board members have experience related to drug policy or substance use treatment.”
Senator to Present Medical Hallucinogens Legalization Bill
“A senator with the Ecological Green Party of Mexico (PVEM) has committed to presenting a bill to legalize and regulate natural hallucinogenic substances such as psilocybin for the treatment of mental health problems such as depression and anxiety. The PVEM senator told forum attendees — among whom were indigenous leaders, traditional healers and scientists — that in Mexico’s indigenous towns, there is ‘infinite wisdom and knowledge about psilocybin mushrooms and what they can do for people’s mental health.’ There has been a “prohibitionist policy” on natural hallucinogens since the 1960s, and the General Health Law considers such substances as ‘psychotropic with no therapeutic value’ and a ‘problem for public health,’ she added. The senator said that several countries have decriminalized substances such as psilocybin to treat mental health disorders and it’s ‘urgent’ for Mexico to do the same.”
Baylor Launches Program Focused on Bioethics and Health Policy of Psychedelics Research
“Research into the medical use of psychedelics to treat mental health is on the rise, but the impact of this research remains unclear. To address questions around this issue, the Center for Medical Ethics and Health Policy at Baylor College of Medicine is launching a new program to explore Ethical and Legal Implications of Psychedelics In Society (ELIPSIS). As part of the new program, experts will outline policies and ethical guidelines for psychedelic research, examine legal implications of psychedelic use for medical care, measure psychosocial impacts of psychedelic research and help to train the next generation of scholars interested in ethical and policy issues related to psychedelics. A multidisciplinary team of experts in bioethics, social science, medicine, health policy and law will study the ethical legal and social implications of this research.”

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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.
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You’re Invited! Allay Consulting and Emerge Law Happy Hour – 2/16/23

Emerge Law Group invites you to attend our Cannabis & Psychedelic Industry happy hour co-hosted with Allay Consulting!

REGISTER HERE

Thursday, February 16, 2023
4:00 pm – 7:00 pm Pacific Time
Gigantic Brewing – Brewery & Taproom
5224 Southeast 26th
Portland, OR 97202

Allay Consulting is a cannabis and psilocybin compliance consulting firm with locations in Denver CO and Portland OR. Allay specializes in FDA, OSHA, state specific regulations, and cGMP/GACP/Organic/ISO certification. Allay Consulting is comprised of former cannabis regulators that now support cannabis & psilocybin companies with their compliance goals. Please visit www.allayconsulting.com to see all of their services.

We would love for you to join us for drinks and networking! See you there!

 

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Emerge Attorneys Named on the Top 200 Global Psychedelic Lawyers and Policy & Regulatory Experts List

We are excited to share that two of our team members have been included in the Top 200 Global Psychedelic Lawyers and Policy & Regulatory Experts List by the Cannabis Law Report! Dave Kopilak and Sean Clancy are both shareholders at Emerge and have been driving forces in the psychedelics space.

Dave was the primary drafter of Oregon’s Psilocybin Services Act (“Measure 109”) which was approved by Oregon voters on November 3, 2020.  Dave was also an advisor to the Oregon Health Authority regarding IRC 280E and tax issues facing psilocybin businesses under Measure 109. As a seasoned corporate business attorney, he brings sharp insight and decades of legal experience to the numerous challenges that Oregon-licensed psilocybin businesses face.

Sean was also part of the small team of Emerge Law Group attorneys that researched and drafted Measure 109.  In September 2022, he served on an Oregon Health Authority Rules Advisory Committee, providing recommendations about the rules that will govern the Measure 109 program.  As a general business attorney who also specializes in intellectual property, Sean represents psychedelic clients on both routine and complex matters including high value brands and technology, plus all variety of contracts and strategic relationships.

As a full-service business law firm that has specialized in the cannabis space for many years, while also serving a variety of conventional industries, Emerge Law Group is familiar with the unique and complex issues that businesses and individuals face in an emerging and highly regulated industry. Emerge Law Group currently assists a variety of clients in connection with Oregon’s psilocybin law and the legal psychedelics space.

Learn more about our Psychedelics Practice Group here, and be sure to subscribe to our specially curated bi-weekly psychedelic news report, PsychedeLinks.

Join us in celebrating Dave & Sean!

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CannaBeat – January 27, 2023

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

Emerge’s Hot Take

FDA Concludes That Existing Regulatory Frameworks for Foods and Supplements Are Not Appropriate for Cannabidiol, Will Work With Congress On a New Way Forward

The US hemp industry has been waiting eight years – since the  2014 Farm Bill opened a window for legal hemp-derived cannabinoid products –to see how the Food and Drug Administration (“FDA”) plans to regulate consumable CBD products. Although the FDA has always insisted that consumable CBD products violate the Food, Drug & Cosmetic Act, they have largely only enforced against CBD manufacturers who make egregious medical claims about their products.  In 2019, after the 2018 Farm Bill formally legalized and regulated hemp, the FDA seemed to offer the industry an olive branch when it convened a working group to “explore potential pathways for dietary supplements and/or conventional foods containing CBD to be lawfully marketed.”

Nearly four years later, the FDA has thrown up its hands and punted to Congress.  On January 26, 2023, the FDA concluded that it will not pursue a legal pathway for these products, but instead look to Congress to set the initial regulatory structure through new legislation. In the meantime, the FDA has emphasized that it will continue to take action against CBD manufacturers “when appropriate.”

The CBD industry now must depend on a divided and dysfunctional Congress to learn its fate, and will continue to occupy a dubious legal landscape, as it has for eight years, and four years since CBD was “legalized,” unless and until Congress acts.

“This decision is a double-edged sword,” according to Emerge Law Group’s Alex Berger, “on one hand, consumable CBD products remain federally illegal, with no pathway to legality.  On the other, FDA has not taken serious enforcement actions against conscientious manufacturers who avoid making unapproved and unfounded medical claims.  Nor do they have the resources to do so, given the ubiquity of CBD out there.  If FDA had made new regulations requiring everyone go through a complex and expensive approval process, it could have left the industry worse off.”

Other Noteworthy News

Ninth Circuit Affirms Dismissal of RICO Claims Relating to Cannabis
Plaintiff Francine Shulman took advantage when recreational marijuana was legalized in California and started a cannabis cultivation operation. At some point, she needed financial back and guidance, so she partnered with Defendant Todd Kaplan. They and their various business entities entered into agreements, which Shulman ultimately claims were used to defraud her out of her assets and licenses. Shulman filed a lawsuit in the Central District of California, a federal court, because two claims involved violations of RICO and two other claims involved violations of the Lanham Act (both federal statutes). […] n the January 18, 2023 Opinion and Order, the three-judge panel unanimously affirmed Judge Birotte’s ruling. They held Shuman lacked standing to bring RICO claims because in order to establish statutory standing under the statute, a plaintiff must show: “(1) that his alleged harm qualifies as injury to his business or property; and (2) that his harm was by reason of the RICO violation, which requires the plaintiff to establish proximate causation.” However, because Shulman’s “business or property” entails the cultivation, sale, and marketing of cannabis – which is all illegal under federal law – her “harm” wasn’t something that could then be remedied by federal law.
Presidential Pardons for Federal Cannabis Possession Convictions Still Unavailable
It’s time for the Department of Justice to deliver the pardon certificates that President Biden promised last fall. The President announced the issuance of marijuana-specific pardons on October 6, 2022 as part of a widely supported set of actions recognizing the folly of federal cannabis prohibition. Thousands of people with federal criminal records for simple marijuana possession are eligible for a pardon that would help them obtain employment, housing, education, and more. Unfortunately, more than three months later, the Department of Justice pardon website indicates that the applications to obtain a pardon certificate are still unavailable.
How Marijuana Companies Are Building Loyalty by Selling Seeds to Consumers
Several cannabis companies have added marijuana seeds to their line of product offerings – even though the move, at first blush, might seem counterintuitive. Why, for one, would marijuana companies want consumers to grow their own plants? Yet, there’s a logic here: Consider how people who grow their own vegetables also shop for fresh veggies at a grocery store or farmers market. “Everybody who’s got a home garden during the spring and the summer grows tomatoes. But 98% of the tomatoes they buy are at a store,” said Carl Giannone, co-founder of Trade Roots, a cannabis company based in Wareham, Massachusetts, that sells seeds direct to consumers. “If growing tomatoes makes them want to buy tomatoes, then I want to let them grow.” An increasing number of companies are offering seeds thanks to a change in federal policy. The move can be profitable for some, while others are doing it to build brand loyalty and share genetics.

The CannaBeat Podcast

From The Archives: Episode 4 - Commercial Lending to Cannabis Companies
Delia and Jay discuss commercial loans for cannabis companies with North Bay Credit Union's chief lending officer Robert Goebel

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Emerge Law Group Announces New Shareholders

Emerge Law Group is pleased to announce that Jay Purcell and Duncan Delano have been promoted to shareholders at the firm, effective January 1, 2023.

Since Jay joined Emerge in March 2022, he has worked on transactions involving cannabis companies in Watsonville, Santa Cruz, Sacramento, Shingle Springs, Goleta, Cathedral City, Palm Springs and San Rafael; including a California drone company with European operations, a New York digital agency’s acquisition of a Brazilian target’s assets, an Oregon/Canada hemp company, a California social media startup, a Los Angeles digital agency focused on queer audiences and a Virginia/California solar energy startup. He works on financings, mergers/acquisitions and day-to-day corporate work.

Jay was a College Scholar at Cornell University’s College of Arts & Sciences, triple-majoring in Government, History, and Philosophy. He stayed at Cornell for a masters in Africana Studies, during which he was a Visiting Scholar at the University of KwaZulu-Natal in Durban. After graduating from Berkeley Law in 2011, his career began in Silicon Valley at Wilson Sonsini Goodrich & Rosati. At WSGR, he worked with small and growing tech companies as they negotiated investments, executive hiring/separation, equity incentives and exits. Jay also worked with the venture funds, angels, family offices, and banks who made and monitored investments in these companies. In 2016, Jay began focusing on cannabis businesses, first in Santa Rosa and San Francisco, and beginning in 2018, in Los Angeles and Southern California. He has worked with companies operating throughout California, including Humboldt, Sonoma, Napa, San Francisco, Alameda, Santa Cruz, Los Angeles, Riverside and San Bernadino counties. These companies include the entire range of licensees: nursery, cultivation, manufacturing, distribution, testing, storefront retail, and non-storefront retail. Jay has worked on both sides of social equity companies in San Francisco, Oakland, and Los Angeles.

Jay was elected to the Board of Directors of the Berkeley Law Alumni Association in 2014, serving as a Board Officer since 2018. For several years, he led or co-led its Outreach Committee, responsible for linking underrepresented admits to alumni mentors during the admissions process.

Duncan joined Emerge in August 2021, leading Emerge’s expansion to New Jersey and New York.  Over the past year and a half, Duncan has grown Emerge’s east coast business into a vibrant, full-service practice servicing cannabis applicants, investors, landlords, and others in the newly regulated cannabis markets.  Duncan helps cannabis businesses of all types apply for and obtain state and local licenses throughout New Jersey and New York.  This includes locating and financing their operations, and finding success in a highly regulated and rapidly changing industry.

Duncan’s practice also focuses on commercial real estate and general corporate law, representing entrepreneurs, lenders, borrowers, developers, funds and commercial landlords and tenants in a variety of business and commercial real estate transactions, including mortgage and mezzanine financing and syndications, joint ventures, commercial leasing, and acquisitions and dispositions of real property and debt.

Duncan has a long record of pro bono service, working with immigrants seeking asylum and reuniting mothers and children separated at the border, successfully petitioning the President to commute the sentence of a non-violent drug offender, and expunging the records of those convicted of marijuana crimes.  Duncan serves on the New York City Bar Association’s Drugs and the Law Committee and on the committee’s Psychedelic Subcommittee.  The Committee recently organized a free seminar series in conjunction with the City Bar Justice Center to educate aspiring New York cannabis entrepreneurs on a variety of pertinent legal startup topics.

Prior to joining Emerge, Duncan worked for seven years at two AM Law 100 firms in New York City, Schulte Roth & Zabel LLP and Haynes and Boone, LLP, in their commercial real estate groups after spending the first three years of his career in Portland, Oregon in a general corporate practice.  Duncan graduated magna cum laude from Lewis & Clark Law School in 2010 with a Certificate in Environmental and Natural Resources Law.

Join us in celebrating our newest shareholders! Congratulations Jay & Duncan!

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Psychedelinks – January 20, 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

Lawmakers Are Already Pursuing Psychedelics Legislation in Nearly a Dozen States for 2023
Efforts to decriminalize or legalize psilocybin and other psychedelics across the United States is off to a racing start in 2023, and these bills are being introduced on a bipartisan basis. Just this week a Republican lawmaker in New Hampshire filed a bill to decriminalize possession and use of psychedelics and a Republican lawmaker in Missouri introduced legislation to create a regulated system for access to psilocybin for certain conditions, such as PTSD and depression. Similarly, Democrat lawmakers in Washington and New York have filed bills to decriminalize and create legal access pathways to psychedelics. Similar efforts are occurring in a handful other states. “The excitement around psychedelics is palpable and I’m thrilled to see the general public and lawmakers embracing plant medicine which we know has so much potential healing power for our communities,” says Emerge attorney Kaci Hohmann, “but I also hear the calls for caution in an effort to not risk federal intervention. This is a time to be collectively mindful of our approach to ensure the best possible outcome for those who will benefit from these medicines the most.”

 Other Noteworthy News

Alberta’s New Policy on Psychedelic Drug Treatment for Mental Illness: Will Canada Lead the Psychedelic Renaissance?
“Patients in Alberta will now be able to legally consider adding psychedelic-assisted therapy to the list of treatment options available for mental illnesses. As of Jan. 16, the option is available only through registered and licensed psychiatrists in the province. Alberta’s new policy may set a precedent that moves Canadians one step closer to accepting psychedelics as medicinal substances, but historically these drugs were widely sought out for recreational and non-clinical purposes. Health Canada has provided exemptions for the use of psilocybin for patients with end-of-life anxiety, and has started approving suppliers and therapists interested in working with psychedelic-assisted psychotherapy. Training programs for psychedelic therapists are popping up across Canada, perhaps anticipating a change in regulation and the current lack of trained professionals ready to deliver psychedelic medicine. Canada has an opportunity to take the lead once more in this so-called psychedelic renaissance. But, it might be our chance to invest in more sustainable solutions to harm reduction and ways of including Indigenous perspectives, rather than racing to push psychedelics into the medical marketplace.”
Race and Ethnicity Appear to Play an Important Role in the Link Between Psychedelic Use and Mental Health Outcomes
“New research has found that race and ethnicity moderate the associations between the use of psychedelic drugs and major depressive episodes in a large, nationally representative sample of U.S. adults. The findings have been published in the Journal of Psychopharmacology. ‘I was interested in the topic because there is a lack of research about psychedelics, race, and mental health,’ said study author Grant M. Jones, a clinical psychology PhD student at Harvard University. ‘Most of the treatment studies have been conducted using majority White samples. So for me, this is my way of starting to raise questions and launch inquires into the intersection of psychedelics, mental health, and race — and seeing how identity might impact the associations that psychedelics have with mental health.’ However, Jones noted that the findings are correlational. “It doesn’t mean that psychedelics have weaker effects for treating mental health disorders for racial and ethnic minorities,’ he said. It is also possible that unaccounted demographic factors contribute to the observed findings.”
Illegal Shroom Dispensaries in the US and Canada are Getting Busted
“It’s not legal anywhere in the US to sell retail psilocybin products[.] It’s the same in Canada, even though one province just reportedly covered the cost of magic mushrooms therapy for two patients. But where there is demand, there will be supply. In Florida, a CBD dispensary which made headlines for selling amanita muscaria, the iconic red and white spotted psychedelic mushroom that does not include the prohibited psilocybin, has been forced to pull the products following a visit from the state’s department of agriculture and consumer services. This all comes shortly after the two owners of Shroomyz, a store in Toronto, were arrested and charged for selling psilocybin products. Other stores operating in Vancouver and Ontario remain unscathed, including another Shroomyz outlet in Ottawa. Meanwhile, an increasing number of stores in New York City and elsewhere have also allegedly been selling products such as magic mushroom chocolate bars, sometimes surreptitiously.”

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PsychedeLinks by Emerge Law Group
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.
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CannaBeat – January 13, 2023

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

Emerge’s Hot Take

Washington Bill to Protect Workers from Being Fired for Marijuana Will Get a Committee Hearing Next Week

Cannabis laws can change quickly.  In many jurisdictions, the changes occur so quickly that cannabis legalization sometimes conflicts with laws and regulations in unrelated areas, such as employment.  In some states with legal cannabis, people are still being denied employment based on inactive THC metabolites found in pre-employment drug tests. These metabolites result from past cannabis usage which could be weeks or more before the drug test. Washington is working to address this issue by drafting legislation prohibiting employment discrimination based on these types of tests. State cannabis laws create a “disconnect between the potential employees’ legal activities and an employer’s hiring practice.” The Washington legislation states:

Applicants are much less likely to test positive or be disqualified for the presence of alcohol on a preemployment screening test compared with cannabis, despite both being legally allowed controlled substances. The legislature intends to prevent restricting job opportunities based on an applicant’s past use of cannabis.

The legislation will have a committee hearing this week. Washington is not the only state that has taken steps to protect the rights of cannabis consumer employees. California, Connecticut, Missouri, Montana, Nevada, New Jersey, New York and Rhode Island have each enacted statutes that limit an employer’s ability to refuse employment based on past and/or off-duty adult-use (recreational) cannabis usage. There are other states that protect medical rights but not adult-use. See map provided by Cal NORML Here.

Other Noteworthy News

High Winds, Flooding Shutter Cannabis Operations Across California
The historic storms pummeling California have caused widespread fallout for cannabis operators across the state and are disrupting operations and possibly supplies. As days of high winds and catastrophic rains batter the coast, some marijuana companies have temporarily closed operations and shored up their facilities in a desperate attempt to lessen the damage. Several businesses told MJBizDaily their operations have been flooded, causing untold economic setbacks. Others have reported product losses as heavy rains damaged crops. Widespread power outages have also halted production lines and left plants vulnerable to mold and other contaminants. Road closures and dangerous conditions have prevented several operators from even accessing their operations. This storm system, which was expected to dissipate by Tuesday afternoon, is the latest climate disaster in California. In late September, a heat wave wreaked havoc on the state’s cannabis industry, coming on the heels of another challenging wildfire season. Washed-out roads are preventing workers from accessing cultivation facilities, which could lead to lost sales and delays in production, including packaging and trimming of flower. That, in turn, could cause marijuana supply-chain disruptions and leave some retail store shelves empty. The storm, which started on Sunday, has forced tens of thousands to evacuate and killed at least 15 people statewide. More than 34 million are under a flood watch….
New Cannabis Laws for 2023 Kick in Across The US
Tens of millions of cannabis consumers will enjoy broadening civil rights and access to weed, thanks to a collection of new laws and regulations taking effect this week and beyond in at least 11 US states. Voters, regulators, and lawmakers across the US enacted laws, rules, and executive orders that take effect this week from sea to shining sea. Here’s the state-by-state rundown of weed laws taking effect in 2023.
U.S. Virgin Islands Lawmakers Pass Cannabis Legalization Bill
Lawmakers in the U.S. Virgin Islands last week passed legislation to legalize recreational marijuana, bringing the number of states and territories in the country that have legalized the use of cannabis by adults to 21. The legislation was passed in the U.S. Virgin Islands Senate on December 30 by a veto-proof majority vote of 11-1. Governor Albert Bryan, who has expressed strong support for cannabis policy reform, is expected to sign the legislation, according to media reports. The legislation was approved in conjunction with another bill that expunges past convictions for marijuana-related offenses, which was passed by senators on Friday with a unanimous vote. “Although there have been many politically driven false narratives about this cannabis legislation, I am proud of the work done by the Senators of the 34th Legislature, community stakeholders and advocates, all of who contributed to the structuring of the final bill voted upon in today’s Session,” Sarauw said in a press release posted to Facebook. “The body did its due diligence in protecting the masses and the best interest of our residents by ensuring that locals and minorities are not locked out of industry and have any opportunity to participate in its economic potential.”

The CannaBeat Podcast

From the Archives: Episode 2 - Has Prop. 64 Been Good for a Mendocino Cultivator?
It's been just over 6 years since CA Prop 64! Listen to CannaBeat's second episode, which reflects on how Prop 64 impacted key players in California's cannabis industry.

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Psychedelinks – January 6, 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

Legal Use of Hallucinogenic Mushrooms Begins in Oregon
This week, the New York Times published an article detailing the commencement of the United States’ first regulated psilocybin program in Oregon. The Oregon Health Authority has finally released the final rules for the Oregon Psilocybin Services Act that we’ve all been waiting for and as of January 2, 2023, the public can apply for a license to become a registered facilitator, manufacturer, service center, or laboratory. Emerge attorney Sean Clancy is reflecting on the journey and says, “we have come a long way since May 2019, working with Tom and Sheri Eckert in our conference room to craft a state-legal legislative framework for accessible psilocybin services. Being the first to finally explore a new area is an exciting and uncertain thing, but Oregon has always been a pioneer state and we’re excited to support the responsible exploration of psilocybin services.”

 Other Noteworthy News

Psychedelics Like Psilocybin Are Now Legal in Colorado with Governor’s Proclamation on Voter-Approved Ballot Measure
“Certain psychedelics are now officially legal to possess and grow in Colorado under state law, with the governor formally declaring the results of a ballot initiative that voters approved last month. Gov. Jared Polis (D) issued the proclamation on Tuesday, along with seven others for separate ballot measures, about a week earlier than he’s required to do under the state Constitution. While there are still several steps that must be taken to fully implement other aspects of the reform—which also involves creating “healing centers” for supervised psychedelic sessions—possession, cultivation and sharing of certain substances by adults 21 and older is now legal under state law. At the state level, the next step is for the governor to make appointments to a new Natural Medicine Advisory Board under the Department of Regulatory Agencies to assist with implementation. The voter-approved law directs him to make his picks by January 31, 2023.”
California Bill Builds on Reforms that Could Herald the Surprisingly Fast Collapse of Psychedelic Prohibition
“This month a California legislator introduced a bill, S.B. 58, that emulates Colorado's new policy, aiming to legalize the possession, preparation, noncommercial transfer, and transportation of [psilocybin, psilocyn, dimethyltryptamine, ibogaine, and mescaline] by adults 21 or older. Unlike the Oregon and Colorado initiatives, S.B. 58 would not authorize state-licensed businesses where people can obtain and use psychedelics. But it would remove the threat of arrest or prosecution for users of the covered psychedelics, and it would allow noncommercial production and sharing. Compared to the gradual collapse of marijuana prohibition, psychedelic policy seems to be shifting remarkably fast.”
New York Lawmakers File a Bill to Legalize Natural Psychedelics
“As the psychedelic revolution continues to spread across the US, New York lawmakers have thrown their hat in the ring and pre-filed a bill aiming to legalize certain natural psychedelics. The new bill, which will be officially introduced this week, would: Legalize adult possession and use of certain natural plant or fungus-based hallucinogens; Grant certain protections for individuals lawfully using such hallucinogens; Remove such hallucinogens from the list of schedule I controlled substances; [and] Make related provisions. The measure would legalize the use of some natural plant or fungus-based hallucinogens, including DMT, ibogaine, mescaline, psilocybin and psilocyn, recategorize them and eliminate their status as prohibited substances.”
Psychedelic Drugs May Launch New Era in Psychiatric Treatment, Brain Scientists Say
“One of the hottest tickets at this year's Society for Neuroscience meeting in San Diego was a session on psychedelic drugs. About 1,000 brain scientists squeezed into an auditorium at the San Diego Convention Center for the symposium, called Psychedelics and Neural Plasticity. Brain plasticity may explain why a single dose of a psychedelic drug can have a long-lasting impact on disorders like anxiety, depression and PTSD. The fact that psychedelics were featured at the world's largest meeting of brain scientists suggests the drugs are poised to enter the scientific mainstream.”

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CannaBeat – December 30, 2022

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

Emerge’s Hot Take

Bipartisan Congressional Lawmakers Tout 2022 Marijuana Reform Accomplishments, Predict “Further Progress” Next Session

The fight for federal reform on cannabis laws has been a tireless one to say the least. The states have outgrown the federal structure surrounding cannabis, which is evidenced by 37 states with a legal medical program and 21 states with an adult-use program. This past year shows that movement is possible, although it’s been in baby steps. A Congressional Cannabis Caucus Memorandum has been released highlighting the federal victories of 2022. (Note: Memo included in article) Earlier this month Biden signed the first-ever standalone marijuana reform legislation promoting research, issued a marijuana pardon in October, and directed administrative review of the federal scheduling of cannabis.  While cannabis reform is still far from the finish line, each of these is a step forward. Additionally, there were numerous bills introduced into both the House and the Senate pushing for descheduling, expungement, consumer and business protections, and more, demonstrating the overall shift in state and federal support for a legal cannabis industry.

As we move into the next session, it seems like we will once again be at a stalemate between the federal chambers, some congressional members are optimistic. Overall, a majority of both the House and the Senate favors reform, which could lead to further progress in 2023. The Congressional Cannabis Caucus wrote:

The Congressional Cannabis Caucus has brought together a broad coalition of members from diverse communities around the country who all agree: it is time for Congress to finally reform federal cannabis policy. There will be some big changes in the next Congress, but one thing that will not change is that a majority in both the House and the Senate favor reform. We are optimistic for our ability as a caucus to help navigate these changes and make further progress. 

The cannabis industry desperately needs some sort of federal reform in order to be a profitable industry. Businesses continue to be overwhelmed by taxation, excessive regulatory oversight, and federal restrictions, and there is only so much each state can individually do.

Other Noteworthy News

Cannabis Industry Gives Back This Holiday Season
Seasonal slogans like “holiday spirit” and “the season of giving” are an annual reminder to give back to those in need. Here are just a few great examples of how cannabis businesses continue to give back. Ayr Wellness, which has dispensaries operating in Arizona, Florida, Massachusetts, Nevada, New Jersey, and Pennsylvania, announced on Dec. 5 that it would be starting its “12 Days of Giving” campaign. While every purchase at its dispensaries will collect $1.12 per transaction to two of its partner organizations, Freedom Grow and Minorities for Medical Marijuana Project Clean Slate Initiative. Overall, Ayr Wellness aims to reach a goal of collecting more than $100,000, which will go toward supporting cannabis prisoners and their families, as well as various advocacy efforts and expungement programs. […] Florida-based AFC Foundation, which offers financing in the cannabis industry, recently made a donation to Georgia-based Corners Outreach organization. In the past, AFC Foundation has also contributed donations to groups like Pennsylvania Court Appointed Special Advocate Association, Yo Soy Ella, and The Weldon Project. According to AFC Foundation president and co-founder Robyn Tannenbaum, it’s essential for the company to give back. […] Michigan-based Puff Cannabis gave out more than 1,700 turkeys prior to Thanksgiving. Now, the brand announced its “Jackets for Joints” event. Running between Dec. 5-18, the campaign is asking for coats and jackets that fit kids between the ages of three to 12. In exchange, Puff is giving out one jar of pre-rolls…..
NYC Starts Legal Weed Sale Intime For the New Year, and the Profits Go to Charity
New York state will kick off legal recreational marijuana sales on Dec. 29, just in time to meet its goal of launching regulated, taxed sales before the end of the year. Housing Works, a New York City-based nonprofit that runs a chain of thrift shops, will launch sales at a 4,400-square-foot Manhattan dispensary at 1 Astor Place, Governor Kathy Hochul said on Wednesday. All proceeds will be directed to the nonprofit. The charity, which provides services to people who were formerly incarcerated and those living with HIV or AIDS, is one of three dozen groups and individuals awarded the state’s first retail licenses last month. “Their decades of work with marginalized communities make them a perfect partner in the effort to ensure that New York’s cannabis market provides meaningful opportunities to those most impacted by the failed cannabis criminalization policies of the past,” said State Senator Liz Krueger in a statement. The launch represents more than just what could be the world’s second-largest legal marijuana market outside of California’s, but a stab at getting regulations right where other states have failed. New York has taken a novel approach that aims to include African Americans — disproportionately arrested for marijuana in the past — in the legal industry. It’s also pledged to separate suppliers from retailers in a so-called two-tier system, in order to try and create a lot of “mom-and-pop” small businesses.
New Jersey Announces $10 Million “Cannabis Equity” Grant for Startup Companies
Startup companies in New Jersey say the process of opening a cannabis business is challenging, especially in communities negatively impacted by the War on Drugs. Some feel left out because most weed retailers currently approved by the state are large corporations formed outside New Jersey. They also say it’s harder to secure funding and real estate sometimes due to the stigma around cannabis.
Now, startups can procure some capital after New Jersey announced a $10 million program called the Cannabis Equity Grant. The New Jersey Economic Development Authority says awardees can use the money for early-stage expenses and technical training. Out of the $10 million allotted to the program, $6 million will go to social equity applicants — people with prior cannabis convictions and those who live in economically disadvantaged areas as defined by the state. “New Jersey is committed to building a thriving and inclusive cannabis sector that maximizes opportunities for underserved communities and people impacted by the War on Drugs, and this program is a major step toward that goal,” said NJEDA CEO Tim Sullivan.
U.S. FDA Weighs Regulations On Cannabis Products In Food and Diet Supplements
The U.S. Food and Drug Administration may finally weigh in with potential food and food supplement guidelines on the use of legal cannabis-derived products in the coming months, some four years after hemp became legal under federal law, The Wall Street Journal reported Tuesday. The FDA will decide within months on how legal cannabis and cannabis-derived cannabidiol (CBD) should be regulated, officials told the newspaper. “I don’t think that we can have the perfect be the enemy of the good when we’re looking at such a vast market that is so available and utilized,” FDA adviser Norman Birenbaum said in the article. “You’ve got a widely unregulated market.” The FDA’s effort comes after a death of a child in Virginia who had eaten gummies containing Delta-8, an ingredient made from hemp. “The safety profiles around these products are not what they are generally accustomed to and not the same as what they get from other products when they walk into a wellness store or grocery store or even a gas station,” Birenbaum said. Hemp was legalized in the annual Farm Bill back in 2018, but the FDA has not published any safety guideline or labeling requirements for CBD partly because cannabis remains a prohibited drug under federal law.

The CannaBeat Podcast

Copernican Solutions for Hemp & Cannabis
Six years after Proposition 64, cannabis consultant Joanna Cedar explains why cannabis “legalization” caused most Sonoma County cultivators to exit the industry. In her analysis, Sonoma County’s ordinance is the worst offender, because it prohibited commercial cultivation on parcels smaller than 2 acres. With that decision, Sonoma County eliminated the cottage license-type before anyone had a chance to apply. Prop. 64 isn’t blameless, of course, but nothing hurt Sonoma’s cultivators like that ordinance: at one point, as many as 5,000 parcels were used for growing cannabis. Over ninety percent (90%) are now out of the regulated market, because they shuttered or because they’re selling exclusively to the illicit market. But on parcels large and small, through California, hemp cultivation persists. And there’s a nationwide market for hemp. Someone can drive a tractor trailer filled with hemp from California to Florida, as easily as onions. Hemp is underregulated, however, with no or minimal age-gating, testing and labeling standards. Joanna Cedar’s “Copernican solution” to the mis-regulation of cannabis and hemp is to unite the two under one regulatory scheme. In truth, they are united in nature (they’re two names for the same plant), but our mis-regulation of the plant has become baroque.

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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: