CannabIP: Developments in Cannabis Legalization and Effect on IP

Cannabis IP patent trademark

As the new year opens, there have been some developments in legalization of cannabis use, both medicinally and recreationally.

First, on the international front, South Korea legalized cannabis for medical use in late 2018.  The South Korean National Assembly passed legislation to amend the Drug Narcotics Act to allow for the sale, import, and export of cannabis for medical purposes as soon as mid-2019.  With the USPTO receiving a gradual bump in patent filings related to methods and uses for new cannabis-related therapeutics and diagnostics inventions after several states legalized adult-use cannabis, a similar bump could be expected for the Korean Intellectual Property Office (KIPO) for patent applications related to medical cannabis inventions in Korea.  South Korea had a slight decrease in patent filings in 2017, but with medical cannabis legal now in that country, patent filings may see a small uptick in 2018 and 2019 data.

Also in the international arena, Thailand will allow cannabis for medical use after its National Legislative Assembly approved it under medical supervision.  The legislation should be fully implemented sometime in 2019.  Similar to what may happen in South Korea, Thailand may experience a bump in patent filings in the Department of Intellectual Property (THDIP) for medical cannabis inventions.

On the domestic front, on December 20, 2018, new federal legislation has removed hemp from the Controlled Substance Act (CSA)’s Schedule I classification, which means hemp production and sale will now be legal at the federal level.  Hemp has been defined as cannabis with less than 0.3% volume of tetrahydrocannabinol (THC) by dry weight, and includes all cannabis extractions, which encompasses cannabidiol (CBD).  However, despite legalization, hemp will be heavily regulated through the federal agencies, namely the U.S. Department of Agriculture (USDA) which will be tasked with developing national regulations for cultivation and production.  Additionally, the Food & Drug Administration (FDA) will continue to regulate any cannabis derivations in food, beverage, and cosmetic products.  Hemp inventions have long been deemed eligible for patent grant, assuming all other requirements for patentability have been met.  The major change will be on the trademark prosecution, now that hemp is legal under federal law, hemp-related marks will now be approved and registered, assuming all others requirements for trademark registration have been met (TMEP 901.02).

More updates will be made to the blog as developments warrant.