Under Maryland state law, all “raw plant material” including pre-rolls are required to be tested at a state-licensed laboratory for: 

• Moisture Content and water activity;  
• Residual solvents and processing chemicals;  
• Residual pesticides;  
• Microbial impurities;  
• Mycotoxins;  
• Foreign materials;  
• The “big four” heavy metals (arsenic, cadmium, lead and mercury) and chromium;  
• Cannabinoids; and 
• Terpenes 

Aside from cannabinoids and terpenes – which is information consumers often look for and want to know when purchasing – all the rest are safety issues. 

“Laboratory testing minimizes the risk of pesticides, microbes, heavy metals, toxins, and residual solvents from being consumed by an immunocompromised population,” reads the most recent revision of the Maryland Cannabis Administration’s Technical Authority For Cannabis, a 33-page document detailing the requirements and procedures labs in the state must perform on cannabis products. 

Like many states that have come online in later waves of legalization, Maryland law requires testing of cannabis products in their final form. That, for example, means testing the completed, fully-packed pre-roll, not just the flower that gets packed into it. 

That means all your ingredients, including your pre-rolled cones, need to be as clean as your flower, or you risk losing the whole batch due to a failed test. 

MICROBIALS AND MYCOTOXINS 

While adult-use cannabis sales continue to climb, Maryland still has a fairly robust medical marijuana program that includes nearly 134,000 patients. For those consumers in particular, making sure the cannabis products they use, including pre-rolls, are as safe as possible is vitally important. 

Testing for Microbials and Mycotoxins, for example, while important safety considerations for healthy users, is key for those who may be immunocompromised. Mycotoxins are a toxic compound produced by molds, such as Aspergillus, and can suppress the immune system and cause liver damage.  

Maryland requires testing for two classes of mycotoxins, Aflatoxins and Ochratoxin A. Both have properties that can alter DNA and potentially cause the formation of cancer cells. Testing for mycotoxins help ensure cannabis products are safe for human consumption. 

Regulations require a total mycotoxin concentration of less than 20 parts per billion in order to make it to dispensary shelves. 

Maryland law also requires testing for E. coli and Salmonella, among others. 

In a similar vein is the requirement to test for water activity, a measure of the available water that can be a breeding ground for microbiological growth. Like most states, Maryland caps water activity at 0.65 Aw in flower and pre-rolls, since water activity above 0.70 Aw creates the conditions for mold to grow, which can be harmful if consumed. 

HEAVY METALS INCLUDING CHROMIUM 

Heavy metals are absorbed into the plant from the soil and can damage all the body’s vital systems, including respiratory, central nervous and even the reproductive system. 

Like many states, Maryland requires testing for the “big four” heavy metals mercury, cadmium, lead, and arsenic, which are toxic to humans, even at small doses. But unlike many legacy markets, Maryland is among a handful of recently-legal states that also require testing for chromium, another dangerous heavy metal. Once chromium reaches the bloodstream, it can damage the kidneys, liver and blood cells with the potential for renal and liver failure if untreated. 

RESIDUAL PESTICIDES AND CHEMICALS 

Maryland also has strict laws regarding the use of pesticides and other “crop protection agents” (like fungicides) on cannabis. There are 146 crop protection agents approved for use on cannabis by the Maryland Department of Agriculture. 

The state also specifically requires testing for 48 pesticides and plant growth regulators, each with their own actionable limits, any of which can require the product to be destroyed. 

There are similar requirements for residual solvents used in the process to create cannabis extracts for vape cartridges or infused pre-rolls. 

LAB REQUIREMENTS 

Along with direction on actionable limits, Maryland requires that all cannabis products be tested at one of the four labs that are certified by the state and accredited to ISO/IEC 17025 by an International Laboratory Accreditation Cooperation (ILAC) recognized third party.  

Additionally, the state offers guidance on exactly how samples are to be collected and maintained, including notes on be sure the lab is clean and that employees use personal protective equipment to ensure samples are not contaminated. There is also direction on the standard operating procedures required for some of the tests. 

“To reliably provide the laboratory with a representative sample, standard sampling methods with descriptive steps must be applied with quality and consistency,” reads the technical authority document. “All sampling must be consistently performed using accepted methodologies.” 

PRE-ROLL COMPLIANCE AND SAFETY 

As noted, Maryland’s cannabis testing is done on products in their final form, meaning that, for example, any pre-rolls must be tested after being packed in their cones. That means that no matter how attentive to the rules you are, your product can still fail if your pre-roll supplier is not as diligent as you are. 

On top of that, customers – especially medical patients – should not be worried that the products they are using to help feel better will make them sicker, whether they purchase a pre-roll at a store or pack a cone at home themselves with their favorite flower. 

“You’re putting something in your body; make sure it’s high quality,” says Custom Cones USA Compliance Manager André Bayard. 

Testing is not required on rolling papers and pre-rolled cones, so many producers do not know what they are getting in their paper, which can contain all of the same dangers as cannabis. For example, a study from California’s SC labs found that 11% of rolling papers they tested would fail that state’s testing regiment, which doesn’t even include Chromium, and that 90% of rolling papers contained heavy metals with more than 8% containing them at a rate above the allowable limits 

Bayard recommends making sure your pre-roll supplier has COAs available to prove their products are clean and will pass tests or will send you samples for you to test before committing to a full order. 

“Work with a company that focuses on those requirements and are trying to set the industry standard with their products,” Bayard says. “Any one issue can be detrimental to your brand reputation.” 

JOIN US AT THE FOREFRONT: REGISTER FOR NCIA’S MARYLAND STAKEHOLDER SUMMIT

Don’t miss out on the opportunity to delve deeper into Maryland’s cannabis landscape at the upcoming NCIA Maryland Stakeholder Summit 2024. This event, hosted by the National Cannabis Industry Association on Tuesday, April 2nd in Baltimore, MD brings together key players, industry experts, and stakeholders to discuss the latest developments, regulations, and opportunities shaping Maryland’s cannabis market.

As a special offer for Industry Insights readers, NCIA is excited to provide a 20% discount code for summit registration. Simply use the code CUSTOMCONESMD25 at checkout to unlock your savings and secure your spot at this must-attend event.

Whether you’re a producer, retailer, advocate, or simply interested in learning more about the industry, this summit offers invaluable insights and networking opportunities. Join us as we explore strategies for navigating regulatory challenges, ensuring product quality, and driving innovation in this dynamic sector.

Register now to secure your spot at the Maryland Stakeholder Summit and be part of the conversation driving Maryland’s cannabis industry forward. Don’t miss your chance to connect with industry leaders, gain valuable knowledge, and contribute to the growth and success of Maryland’s cannabis market.

Register here and be at the forefront of Maryland’s cannabis revolution!

Maryland-based dispensary, Far & Dotter, and Curio Wellness was recently hit with a fine of $26,000 for selling cannabis that was removed from a dumpster.

According to a Maryland Cannabis Administration (MCA) consent order shared by The Baltimore Banner, a total of 64 units of cannabis (224 grams) product were thrown into the garbage outside of Curio Wellness’ Far & Dotter dispensary, located in Timonium, Maryland in July 2023. The order states that the store received a delivery of Amnesia OG flower in sealed jars, but does not specify the reason as to why it was thrown away.

The products sat in the garbage for approximately 41 hours and nine minutes. Video footage shows three employees “leaning over the dumpster” to pull out the products. Further video footage shows one employee repackaging the products, and later told the MCA that they did so “because the original packaging was covered in a liquid substance.”

A statement from Curio Wellness claims that no liquid or other substances reached the pre-packaged cannabis products. “The aforementioned product was inside sealed jars, within sealed boxes, and it is undisputed that no outside material ever breached the jars or touched the product,” Curio stated.

The incident came to light when a Far & Dotter inventory manager listed as “A.J.” reported it to the MCA. According to that individual, they recommended that the cannabis be destroyed rather than being recovered and resold, but management “insisted on not losing the profit.” A.J. was terminated from their position prior to them emailing the MCA.

An unnamed Far & Dotter general manager made the decision “on her own” to sell the cannabis that was previously in the dumpster.

During the time that the repackaged cannabis was on store shelves, between July 28-Aug. 3, it was sold to 24 medical cannabis patients and 18 recreational consumers, a combined value of $3,174.50. The consent order verifies that the MCA “has received no reports of adverse incidents related to its sales of the Amnesia OG product.”

Curio co-founder Wendy Bronfein told MJBizDaily in a statement that they are committed to launching an internal investigation to adhere to the law. “Non-adherence to safety and compliance procedures is not taken lightly, nor tolerated,” Bronfein wrote. “Curio prides itself on trusted relationships with our customers and employees and strives to maintain excellence throughout all operations, with a high commitment to safety and compliance procedures.”

In addition to the $26,000 fine for violating the law, the dispensary must submit its green waste logs to the MCA every month for the next six months and is also required to submit “scale calibration and cleaning logs” to the MCA for monthly review as well. All employees will need to be retrained on how to properly dispose of green waste.

According to the MCA, green waste disposal includes contaminated cannabis, damaged or opened products, expired products, products without labels, recalled products, and much more. To dispose of any such green waste, the business must report it on a Cannabis Green Waste Log that details the date and time of destruction, as well as the product name, metric tag number, product weight, the reason for the product being labeled as waste, and the method of destruction. Common methods of destruction are listed as “returned to grower or processor, kitty litter, mulch, bleach, etc.”

Recreational cannabis sales began in July 2023, and collected $20 million in sales during its first month. Reports show that the state has doubled its sales since then, and as of January 2024, total sales collected has amounted to $700 million. According to SunMed Growers president Jake Van Wingerden, the steady increase in sales has allowed the company to give raises to employees. “Once legalization happened we were able to stabilize and a lot of our projections came true,” said Van Wingerden. “We recently at SunMed gave the entire staff a 5-dollar-an-hour raise across the board. So, we were very excited to be able to reinvest back into our team and our people.” SunMed is one of the largest cannabis farms currently operating in Maryland.

Last month in Maryland, Police Chief Marchus Jones stood up against county regulations that currently require new law enforcement recruits from having consumed cannabis within the past three years. “I think in today’s environment, where we are with the legalization of cannabis, that has now restricted law enforcement agencies, particularly larger agencies, across the state,” said Jones.

Montgomery County Assistant Chief Administrative Officer Earl Stoddard also commented on the rule. “Having a legal drug become a barrier to increasing law enforcement seems like it’s a bad policy,” Stodder said. “It’s a big issue now, but it’s going to become an increasingly large issue as more people who have consumed with legalization consider policing, they realize they’re ineligible, that’s when we expect to see a bigger drop-off in applications.”

Jones called on the Maryland Police Training and Standards Commission to reevaluate the three-year rule, and the commission confirmed it would study alternatives but did not provide an estimated timeline.

A new multi-million dollar study at Johns Hopkins University aims to analyze how patients nationwide respond to medical cannabis treatments. 

Johns Hopkins University, which championed one of the largest and most widely referenced studies on medical applications of psilocybin mushrooms, announced the launch of a medical cannabis study in the winter edition of their Brainwise newsletter. 

According to the newsletter, the study will take a nationally representative sample of about 10,000 medical cannabis patients in an attempt to “fill [the] information gap” that exists when comparing medical cannabis knowledge to other elements of modern medicine. In other words, they are attempting to learn just as much about cannabis and how it can be used to treat medical maladies as other potential treatments which have all typically undergone extensive peer-reviewed scrutiny before ever being used in a medical setting. Cannabis is already used nationwide to treat a range of ailments like pain management, anxiety and ADHD but little is certain about long-term practical efficacy of such treatments other than anecdotal information from people who say it helps them. 

“We have the availability of cannabis as a therapeutic, but we’re lacking the quality of data that we have with other medicines,” said a written statement by Ryan Vandrey, one of the initiative’s creators and a professor of psychiatry and behavioral sciences at the Johns Hopkins University School of Medicine. “Our mission with this research is to understand the health impacts of therapeutic cannabis use,”Vandrey said. “We hope to provide some starting points for understanding what types of products may or may not be helpful and what types of products may be more risky for use in certain populations or for certain therapeutic purposes.”

The initiative is supported by a five-year, $10 million grant from the National Institute on Drug Abuse and plans to collect data from patients such as methods of ingestion (smoking, edibles, vaping etc.), dosage, interactions with other medications and the chemical composition of different products. 

 “We’re tracking them with multiple assessments over the course of their first year with more tightly spaced assessments toward the beginning because our assumption is that as people are starting their medical cannabis journey, they’re likely going to try different products until they find the products that best help them with their symptoms,” said Johannes Thrul, associate professor of mental health at the Johns Hopkins Bloomberg School of Public Health who is collaborating on this project with Vandrey. 

One of the issues with quantifying, analyzing or studying cannabis in general is that it’s such a versatile plant that can be ingested and used in so many different fashions that it has somewhat puzzled medical and pharmaceutical professionals in the past who tend to rely on cut-and-dry medications which can be easily patented. This is not the case with cannabis products or cannabis users which tend to vary greatly. How does one compare the experience of dabbing to combustion of flower or distillate gummies to hash gummies without extensive study that, up until recently, was ineligible for any form of federal funding. The new Johns Hopkins study aims to put a dent in that research deficit. 

“Under the umbrella term of cannabis exist hundreds of products that are all different in very important and significant ways,” Vandrey said. “We’re trying to narrow the scope a little bit, find areas of real promise and focus the science on those.”

Vandrey said that the data from this study could have practical applications across the board from guiding decisions made in clinical settings, to legislative policy decisions, to providing regulations for additional clinical trials. This is even more evident based on the policy and clinical decisions which have already been made from the aforementioned psilocybin study which paved the way for decriminalization in several cities across the country as well as additional clinical trials and direct legalization for medical use in states like Oregon. 

The researchers at Johns Hopkins will be working closely with the National Institute on Drug Abuse as well as Realm of Caring, a Colorado-based nonprofit that provides information about cannabinoid therapies. The researchers will analyze and track data from patients over a year or more of their own respective cannabis-based treatments.

VANCOUVER, British Columbia, Dec. 22, 2023 (GLOBE NEWSWIRE) — Cannabix Technologies Inc. (CSE: BLO) (OTC PINK: BLOZF) (the “Company or Cannabix”), developer of marijuana and alcohol breath testing devices, reports that it will be participating in a “green lab” testing day in Montgomery County, Maryland held by the Montgomery County Police Department. In particular the Company will be supplying its marijuana breathalyzer technology and sending its own representative to facilitate the collection of breath samples alongside law enforcement officers who are testing subjects under the influence of marijuana. The green lab is being held by the Public Safety Training Academy for the Montgomery County Police Department. Various local, regional and out of state representatives are expected to attend the event being held in early January 2024.

The Montgomery County Police Department has held green lab events since 2017, in order to help train police officers about cannabis driving impairment. The green lab aids officers in Advanced Roadside Impaired Driving Enforcement training which helps them learn of the effects of marijuana, and what signs to look for when conducting sobriety tests. Cannabix will be sending its own representative and Breath Collection Units (“BCU”) (See Figure 1) to collect breath samples at various time points pre and post marijuana consumption by subjects. Furthermore, Cannabix will be introducing its technology as a new tool for detection of marijuana in breath to attendees.

In recent months, Cannabix has been using its BCU and Mass Spectrometer Breath Sampler (“MSBS”) to quantify delta-9 THC in human breath samples. Cannabix scientists are using an internal standard to generate a calibration curve for THC quantification in breath samples. Currently, a limit of detection and limit of quantification have been achieved with human subjects in the low picogram range. This allows detection of THC from smoking and edibles up to 4+ hours after consumption.

Cannabix will look to participate in other green labs tests in order to introduce its products to law enforcement stakeholders and collect important data with real world testing conditions.

Fig. 1 Cannabix updated Breath Collection Unit (BCU

About Cannabix Technologies Inc.

Cannabix Technologies Inc. is a developer of marijuana and alcohol breathalyzer technologies for law enforcement, workplaces and laboratories. Cannabix is working to develop delta-9 THC and alcohol screening devices. Delta-9 THC is the psychoactive component of marijuana that causes impairment. Breath testing for delta-9 THC would allow employers and law enforcement to identify recent marijuana use that better aligns with impairment. Cannabix is the developer of contactless breath alcohol detection devices for employers and other settings.

We seek Safe Harbor.

On behalf of the Board of Directors

“Rav Mlait”

CEO
Cannabix Technologies Inc.

For further information, contact the Company at info@cannabixtechnologies.com

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking information that involves various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company, such as final development of a commercial or prototype product(s), successful trial or pilot of company technologies, no assurance that commercial sales of any kind actually materialize; no assurance the Company will have sufficient funds to complete product development. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) adverse market conditions; (ii) risks regarding protection of proprietary technology; (iii) the ability of the Company to complete financings; (iv) the ability of the Company to develop and market its future product; and (v) risks regarding government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company’s public announcements and filings. There is no assurance that its development of breathalyzer technologies will provide any benefit to the Company, and no assurance that any proposed new products will be built, will be successful in beta testing or clinical trials. The is no assurance that the Company will enter into any partnerships to advance any of its corporate initiatives or technologies. There is no assurance that any “patent pending” or “provisional patents” technologies licensed by the Company or owned by the Company will receive patent status by regulatory authorities. The Company is not currently selling commercial breathalyzers. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Governors across America are tired of waiting for President Joe Biden to fulfill his goal to swiftly determine if the country should reschedule cannabis at the federal level—leading six of them to urge the president in a letter to do something after months of inaction.

Colorado Gov. Jared Polis, Illinois Gov. J.B. Pritzker, Louisiana Gov. John Bel Edwards, Maryland Gov. Wes Moore, New York Gov. Kathy Hochul, and New Jersey Gov. Phil Murphy urged the president to take action in a letter dated Dec. 5, given that it’s been 10 years since the first states legalized adult-use pot (starting with Colorado and Washington).

Polis led the effort to send the Biden administration the letter. The Governors applauded the president for reconsidering the classification of cannabis and encouraged the federal government to reschedule cannabis. Polis expressed the Governors’ hope that the Drug Enforcement Administration (DEA) will reschedule cannabis from Schedule I to Schedule III this year. 

This is What Americans Want

Americans overwhelmingly support legal cannabis, Pew Research found. Nearly 88% of Americans said they are in favor of legalization for medical and adult-use cannabis. Doing so, they said, would rectify cannabis’s outdated classification, which is long overdue and puts small businesses and public safety at risk. 

“This decision by a leading federal health agency comes on the heels of 38 states creating their own state markets and complementary regulatory systems. In some cases, these state regimes have thrived for more than a decade, and this recommendation by FDA is a real testament to their success. It’s a signal that FDA and the Department of Health and Human Services [HHS] have faith in state regulators and the regulations that they have promulgated to keep citizens safe,” the Governors wrote.

The DEA only adheres to its own analysis, however, and is not necessarily bound by the HHS’s recommendation, Reuters reported, though many other experts predicted the DEA would act on their recommendation. Only a major administrative action or an act of Congress could create major change towards ending the prohibition of cannabis.

They acknowledged the enormous impact federal law has upon cannabis businesses, forcing them to do business in cash, and also putting them at risk for violent crime, which High Times has documented again and again.

“Economically, rescheduling to Schedule III will alleviate restrictions of Section 280E of the

Internal Revenue Code, allowing cannabis-related businesses to take ordinary business

deductions—just like every other American business,” the letter reads. “Economists estimate that this will save$1.8 billion per year by shifting cannabis companies to a standard federal corporate rate of 21% versus the up to 80% effective tax rate they face now.”

A Cash-Only Business

Rescheduling pot would allow cannabis-related businesses to take ordinary tax deductions, like any other business, and it would not only alleviate financial and safety concerns for businesses but allow the cannabis industry to play a full role in the American business landscape. 

Regulated cannabis that undergoes lab-testing, etc. is safer than alternatives and has been linked to reduced rates of opioid abuse, opioid-related hospitalizations, traffic fatalities, drug treatment admissions, and overdose deaths. 

“There is, and will continue to be, a significant consumer demand for cannabis. That fact will not change regardless of the public policy choices that we make.” The Governors wrote So, it seems obvious and sensible to us to make cannabis as safe as it can be for adult consumers while simultaneously protecting our children. The state-regulated marketplace does just that. If the state-legal marketplace doesn’t survive, then we will see unsafe products on every street corner,” the Governors continued.

Stocks soared as Biden released an announcement on Oct. 6, 2022, urging the of Health and Human Services and the Attorney General to consider reclassifying pot, which was the first indicator that it could actually happen.

“I am asking the Secretary of Health and Human Services and the Attorney General to initiate the administrative process to review expeditiously how marijuana is scheduled under federal law.  Federal law currently classifies marijuana in Schedule I of the Controlled Substances Act, the classification meant for the most dangerous substances.  This is the same schedule as for heroin and LSD, and even higher than the classification of fentanyl and methamphetamine – the drugs that are driving our overdose epidemic. 

Several months ago, Polis sent a letter to Biden on Sept. 5 regarding the U.S. Department of Health and Human Services’ (HHS) recommendation for the Drug Enforcement Administration (DEA) to reschedule cannabis from a Schedule I substance to a Schedule III substance.

“We are pleased to hear that you have recently received Health and Human Services’s (HHS) recommendation to move cannabis to Schedule III,” Polis wrote in his letter. “It’s about time.”

It’s not uncommon for residents of states yet to enact cannabis laws to travel and obtain their weed through out-of-state dispensaries. However, one Southern state appears to be experiencing this issue when it comes to medical cannabis, even though it’s had legal, operational medical dispensaries since 2020.

A new 78-page report released by the Virginia Cannabis Control Authority (CCA) takes a closer look at the state’s medical cannabis market, most notably finding that the state’s high prices are driving consumers to bordering states to purchase their cannabis products.

The report is the result of a request on behalf of the CCA from earlier in 2023, to study Virginia’s medical cannabis program with a focus on patient access and “determining the necessity and feasibility of adding new licenses to the existing program.” The study involved a population survey of past-year cannabis consumers and patients, an assessment of supply based on patient experiences and a policy analysis.

High Prices Push Virginians Out of State, Alternative Means

“The study found that the Virginia medical cannabis program is struggling to capture patients amid evolving local policies as well as adult-use policies in bordering states, resulting in prices remaining high,” the report notes, adding that 12% of patients report traveling to obtain cannabis from other states or jurisdictions, largely Washington, D.C. and Maryland.

According to the report, medical cannabis patients in Virginia spend more on cannabis than non-medical cannabis patients in the state. It also notes that patients in Virginia report spending an estimate of $19 per gram on average for medical cannabis flower, which is higher than the national average for medical cannabis flower — though looking at the publicly available price data, the report found that the average price of a medical gram in Virginia was closer to $14, which is still higher than average.

By comparison, the average price per medical gram in D.C. was $8/73 in September 2023; in Maryland, adult-use cannabis is $9.27 per gram on average.

Looking broader, 90% of patients purchased cannabis from sources other than the Virginia medical market, and the largest proportion of grams were obtained from “an unregulated, but not necessarily illicit, market.”  Additionally, 57% of medical patients obtained their cannabis by growing at home, while 65.2% of patients received cannabis from a friend or family. 

Virginia MMJ Program’s Low Barriers, Low Participation

Despite low barriers to patient participation, Virginia’s estimated patient enrollment encompasses 0.5% of the total state population, which authors say supports the assertion that patients can meet their need for medical cannabis elsewhere. 

Of those past-year consumers who are not patients, 22% said they did not need to become medical patients because they already had access to cannabis.

“Virginia’s restrictive policy framework, including limited licensing and the Health Service Area (HSA) segmentation, coupled with the widespread availability of cannabis from out-of-state markets, home cultivation, and illicit channels, has created an environment in which Pharmaceutical Processors are operating at their profit-maximizing supply quantity,” the report states. 

“In other words, licensees may have no expectation of increased profits if they expand their supply and lower prices because substitute markets have recently taken root.”

Solutions Needed to Sustain Virginia’s Medical Program

The report notes that the high prices of Virginia’s medical cannabis are “likely necessary” for Pharmaceutical Processors to stay afloat due to the current state market and policies that accompany it, rather than intentionally overcharging medical patients.

Authors also lay out five potential pathways to improve patient access to medical cannabis, with the shared objective to increase supply, lower prices and shift patient demand to regulated Pharmaceutical Processors.

The pathways include a mix of potential options, like issuing the remaining Pharmaceutical Processor licenses in the HSA or adding limited standalone medical cultivation, manufacturing and dispensary licenses allowed to operate within any HSA while allowing Pharmaceutical Processors to expand beyond the current six-store minimum within their area.

Annapolis, Maryland-based cannabis company Crabcakes & Cannabis®, pulled a popular parody sticker after receiving a cease-and-desist letter from McCormick & Company, Incorporated, the makers of Old Bay® seasoning, who said their sticker was too similar to their Old Bay logo. 

Crabcakes & Cannabis took the opportunity to challenge the implications of a Supreme Court decision last June that is impacting all types of small businesses. The issue brings up the question that if parodies aren’t allowed, are we taking trademark laws too far?

The novelty sticker parodies the Old Bay spice jar, but it ended up prompting a lawsuit as McCormick alleges a trademark infringement and tarnishing of their image by associating it with cannabis.

“While we firmly believe in the protection of parody and First Amendment rights, the prohibitive cost of litigation led us to make the difficult decision to discontinue our parody sticker,” Founder of Crabcakes & Cannabis Jennifer Culpepper said in a statement We stand by the fact that no reasonable consumer would confuse our novelty item with a food seasoning product.”

The cease and desist letter sent from McCormick & Company claims that the parody sticker, featuring the words “420 BUD” and designed in a way that’s reminiscent of the Old Bay jar, infringed upon their trademark and trade dress, potentially harming their brand’s reputation. 

Per the letter, McCormick stated that the company “takes this matter very seriously, as it is not in the business of sponsoring products relating to marijuana use.”

Culpepper continued, “We deeply respect businesses’ (and artists’) rights to safeguard their brands, but it is paramount that we strike a balance between these rights and the freedom of expression and creativity that parody affords. When a large business bullies a small business through costly litigation, it makes standing up for your rights nearly impossible. Regardless, we still love Old Bay. Our parody sticker was intended to pay homage to the Maryland brand, not to tarnish anyone’s reputation.”

Culpepper also owns Brand Joint, a national branding agency, and she has been on the other side of a copyright infringement case in the past. She stated, “We have always been very careful not to copy, but rather to create fun and unique parody designs that celebrate Maryland icons.”

The company hopes something good can come out of the incident for the better.

Culpepper concluded, “We hope that this experience will spark a broader conversation about the importance of protecting parody and freedom of expression in our society.

Jack Daniel’s SCOTUS Decision

Last June, a dog toy company Bad Spaniels triggered a lawsuit saying that the company copied elements of Jack Daniels that violated trademark laws.

Jack Daniel’s Properties v. VIP Products rejected the use of images that resemble Jack Daniel’s trademarks by a manufacturer selling a line of dog toys that mock various beverage manufacturers. Justice Elena Kagan said there were four main elements used by Bad Spaniels that violated trademark laws:

• The toy “is about the same size and shape as an ordinary bottle of Jack Daniel’s”;
• The “faux bottle” follows the original in using a “black label with stylized white text and a white filigreed border”;
• The toy has the product name (Bad Spaniels) “in a like font and arch” to those of the Jack Daniel’s bottle; and
• “Old No. 2 On Your Tennessee Carpet” replaces “Old No. 7 Tennessee Sour Mash Whiskey.”

All members of the court agreed with Justice Kagan’s opinion to deem that toy a condemnable infringement of the Jack Daniel’s marks.

Cannabis and Candy Trademark Cases

A number of other cannabis companies have faced similar lawsuits—particularly cannabis products that mimic or parody major candy brands.

Skittles maker Mars Wrigley won a lawsuit in August 2022 against cannabis companies that mimicked the candy. Mars initially filed the lawsuit in May 2021, claiming that the illegal retailers infringed on Mars’s registered trademarks. 

Mars Canada Inc., global candy giant and Mars Wrigley, which oversees confections such as of M&M’S®, SNICKERS®, ORBIT®, EXTRA® and Skittles®, recently concluded a lawsuit involving the use of the Skittles logo on illegal cannabis products. On Aug. 12, a federal Judge Patrick Gleeson ruled that three online cannabis retailers “deliver up and destroy all infringing products and packaging,” and also pay various sums for infringing upon Mars’s trademark.

In August 2017, the Ohio-based glue company that produces Gorilla Glue took GG Strains to court due to the use of “Gorilla Glue” in numerous strain names. In February 2018, the company went after cannabis companies who were infringing upon the Hershey’s Chocolate trademarked products. In February 2019, a group of delivery businesses called United Pot Smokers, UPS420, and THCPlant, were brought to court by UPS (United Parcel Service) regarding misleading brand identifiers. Later in July 2019, Sour Patch Kids candy maker targeted an illegal cannabis edibles product called “Stoney Patch” for infringing upon the trademark.

A Maryland judge has temporarily suspended portions of the state’s marijuana legalization statute prohibiting the sale of hemp-derived products with intoxicating cannabinoids. The judge’s order allows hemp and CBD shops to resume selling the products while a lawsuit challenging the state’s cannabis legalization law continues. 

The legal action was filed in July by a group of business owners and the Maryland Hemp Coalition challenging provisions of the state’s marijuana legalization law that only allow businesses approved by state cannabis regulators to sell products that contain THC. The law also restricts sales of other intoxicating cannabinoids derived from hemp, including delta-8 THC and delta-10 THC, which have been sold in Maryland by hemp businesses for years following the legalization of hemp with the 2018 Farm Bill. 

The named defendants in the case are state Governor Wes Moore, the Maryland Cannabis Administration and the Maryland Alcohol, Tobacco, and Cannabis Commission. Attorneys for the defendants have filed motions to dismiss the lawsuit but have not succeeded.

The plaintiffs argue in the suit that the law wrongfully requires them to either obtain a cannabis business license, which is subject to eligibility requirements, stop selling products they have been selling for years, or close their businesses. The plaintiffs allege that the law violates the Maryland Constitution’s equal protection and anti-monopoly clauses by excluding them from the state’s regulated cannabis market. 

Judge’s Order Allows Sales To Resume

In an order handed down on Thursday, Washington County Circuit Court Judge Brett R. Wilson said the restrictions on hemp products with intoxicating hemp products would “irreparably harm” the plaintiffs, some of whom have had to close their businesses selling hemp-derived cannabinoid products. Wilson said his order “is not contrary to the public interest.”

The order allows the plaintiffs to temporarily resume selling products with hemp-derived cannabinoids while the lawsuit continues. After Wilson handed down the order, state officials said it would hurt efforts to make products containing THC, including hemp-derived THC, safe for consumers.

“The Administration was disappointed to learn of the preliminary decision in Washington County Circuit Court allowing for the continued sale of unregulated, untested, and intoxicating hemp-derived products,” William Tilburg, the director of the Maryland Cannabis Administration, said in a statement from the agency.

Leaders in the state legislature also expressed dissatisfaction with the judge’s order and predicted that the lawsuit would not prevail.

“We are disappointed in the Washington County Circuit Court’s initial order regarding Maryland’s landmark recreational adult-use cannabis legislation,” House Speaker Adrienne A. Jones and Senate President Bill Ferguson said in a joint statement. “We remain confident that the law is legal.”

Plaintiffs Welcome Court Order

The judge’s order was welcomed by the plaintiffs including business owners who had temporarily closed their shops to comply with Maryland’s cannabis legalization statute.

“We’re happy that, for now, we’re back in business,” said Nevin Young, the plaintiffs’ attorney.

“This is really about the state wanting sole control — through a very limited number of retailers — of the market for all THC products,” he added.

Young said that the plaintiffs had provided evidence in court to show that the products they sell do not pose a risk to consumers, a claim frequently made by the state’s cannabis regulators.

“They brought products to the hearing with them that are tested in independent laboratories that actually exceed the standards that the state of Maryland requires for the products sold in the state,” he said.

“They have basically been shut out. Not because their products are dangerous, but because their products are undesired,” Young added.

Nicholas Patrick, one of the plaintiffs in the case, said that he had to close his three Embrace Wellness Centers because of the restrictions. Together, the three shops were the heart of a business that generated more than $1.5 million per year and employed several workers.

“I was inches away from bankruptcy,” Patrick told the Washington Post on Thursday before a coalition of plaintiffs met to discuss their next steps. “Hopefully, I can get my business up and running and take care of my family.”

Patrick said that revenue at his business declined by 74% after Maryland’s cannabis legalization statute went into effect. He was eventually able to convert one of his locations to a smoke shop, but he has had to permanently close the other two retail operations and he was forced to lay off four employees.

“The human cost for me was the worst cost,” Patrick said. “We had to let them go, and it broke my heart in a million pieces. … I don’t even have the financial means to get them back opened up. I have no money left.”

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