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Harris Bricken: Toys R Us Sues Unlicensed New York Cannabis Dispensary for Infringement

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Cannabis companies, for some reason, seem to love clever names predicated on well-known brands. (See e.g. Zkittlez and Skittles or Bloom and Cool). More often than not, these companies end up in trouble. (See Major Food and Beverage Companies Call Out Marijuana Copycats). Although these companies may try a parody defense, it’s not so easy. On the heels of a Supreme Court argument in case involving the parody defense, TOYS R US has filed a federal lawsuit against an unlicensed Brooklyn, New York cannabis retailer ZAZA R US in the Eastern District of New York.

Unbeknownst to me, the term “ZAZA” apparently is a colloquial term that refers to high-grade strains of cannabis. (I guess “weed” and “grass” is outdated). TOYS R US alleges that ZAZA R US operates at least two brick-and-mortar stores with at least one store displaying the allegedly infringing signage seen above. TOYS R US claims this is a blatant and obvious bad-faith effort to trade on the goodwill and fame of TOYS R US.

TOYS R US pleads the usual assortment of claims for trademark dilution, trademark infringement, false designation of origin, and unfair competition under the federal Lanham Act, 15 U.S.C. § 1051 et seq., and New York state law. TOYS R US also seeks permanent injunctive relief to stop ZAZA R US from using TOYS R US’ intellectual property, as well as a significant award of damages that includes disgorgement by ZAZA R US  of any profits, actual damages to Toys R US, a royalty payment by ZAZA R US, attorneys’ fees, and costs of suit.

I suspect that whatever fun ZAZA R US was having with its branding is over in the face of an army of serious intellectual property lawyers. We will let you know what happens!

 

The post Toys R Us Sues Unlicensed New York Cannabis Dispensary for Infringement appeared first on Harris Bricken Sliwoski LLP.



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New Mexico Regulation and Licensing Department revokes licenses at two Torrance County cannabis farms

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New Mexico Regulation and Licensing Department revokes licenses at two Torrance County cannabis farms



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Massachusetts: Uxbridge to refund more than $1 million to cannabis retail outlet in impact fees case

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The Town of Uxbridge has reached an agreement in Superior Court to largely refund the community impact fees paid by a cannabis store, according to court documents and the law firm representing the store

On Dec. 29, the town entered into an agreement with Caroline’s Cannabis to refund the store $1,171,633.60. According to a statement from the law firm MacMillan Law Offices, the amount constitutes 80% of the community impact fees the store paid the town and may be the first legal settlement resulting in refund of the controversial fees in the state.

The store has a location at 640 Douglas St. in Uxbridge.

According to the law firm’s statement, Caroline’s Cannabis filed a lawsuit against the town in Worcester Superior Court in 2022. The store sought an order requiring the town to produce documentation to substantiate the community impact fee it was collecting from the store.

Caroline’s Cannabis claimed it had caused no impact or costs to the town, and that the town could not collect the fees unless it could document otherwise. At the time, Caroline’s Cannabis requested to recover $1.4 million.

Read the background here

https://www.telegram.com/story/news/local/2024/01/18/carolyns-cannabis-community-impact-fees-refuns/72272643007/



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Beverly Hills Lawyer Invested in Oregon Cannabis Farm .. Percentage of Crop(s) Ended Up In Cali Market

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Willamette Week breaks the story that’s going to ruin his holidays.

One of the many weed entrepreneurs to descend on Cave Junction during the green rush was Matthew Portnoff, a partner with a specialty in cannabis law at the California offices of a white-shoe law firm.

In 2020, the Oregon Liquor and Cannabis Commission determined that weed grown at his farm in 2019 had been diverted onto the black market. But after a yearslong investigation, the agency was never able to conclude whether Portnoff authorized the leakage—or if he was instead the victim of a swindle.

Portnoff declined to comment for this story.

A graduate of UC Berkeley and the University of Southern California’s law school, Portnoff, 48, is an expert in tax law based in Beverly Hills, with a history of entrepreneurial forays. (An online database lists him as a producer of a romantic comedy starring Paris Hilton in 2006 that was panned by critics.)

In 2016, Portnoff and his wife, Luiza, purchased a Cave Junction farm for $415,000 just as the state began handing out licenses to grow recreational weed. (An LLC controlled by his father, a surgeon from California, bought 19 acres next door to his son for the same purpose.)

Two years later, Portnoff and his wife landed a license. So, eventually, did his dad. They grew thousands of plants on the 35-acre properties located along Takilma Road in the rural farmland of the Illinois Valley.

To run his new Oregon farm, Portnoff hired a local grower named Michael Horner, who’d come recommended by a California client.

But by the time the first harvest arrived, an oversupply of weed on the market caused prices in Oregon to fall by at least half.

And beginning in February 2019, the OLCC began documenting a series of concerning reports from Portnoff’s employees.

First, Horner quit his job working for Portnoff and told an OLCC inspector in February 2019 that men had arrived on the farm to take weed back to California for sale.

A month later, the inspector went to the farm to investigate. State-licensed farms are required to have surveillance cameras monitoring all aspects of the operation. But in March 2019, the inspector discovered a four-day gap in the footage—and found “many discrepancies” between the inventory on site and what was recorded in a state database. The inspector opened some storage totes to find them empty or full of “waste material.” (The OLCC declined to disclose the records identifying the discrepancies to WW, noting they were exempt from public disclosure.)

Read the full report at 

https://www.wweek.com/news/2023/12/20/a-beverly-hills-lawyer-invested-in-oregon-weed-not-all-of-the-crop-seems-to-have-stayed-in-oregon/



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