After a long-fought battle before the Trademark Trial and Appeals Board (TTAB), Katy Young prevailed at trial which secured the client’s right to register four (4) trademarks. The client is a business run by the son of late famous hemp activist Jack Herer. The dispute was about who has the rights to Jack Herer’s name and signature. The client had filed four trademark applications, all using Jack Herer’s name: one for an online shop, one for t-shirts, one for smoker’s articles, and another for smoker’s articles but using Jack’s signature instead of being a word mark only. The son of Jack Herer’s former girlfriend filed trademark oppositions for all four applications, claiming that he has a contract that gives him all rights to Jack Herer’s name, likeness, and signature. At trial, the Trademark Trial and Appeals Board found that he had not met his burden to prove the existence of a contract that gave him such rights. The client is thrilled to be able to register and use their trademarks.
Category: Canna-business
Landlord Recovers Rents in Commercial Unlawful Detainer
The client, a landlord of a large warehouse in Berkeley, leased a commercial building to a famous cannabis dispensary as that company planned to expand operations. As has happened with many cannabis businesses in California, the expansion plans had to be shelved due to crushing tax liability that the tenant faced (thanks to IRS section 280e!). IRS section 280e says that to the extent a business deals in schedule 1 controlled substances (like cannabis), the business may only deduct the cost of goods sold. 280e has created massive tax liability for most cannabis businesses. Dispensaries face steep competition from the unregulated market as well. The tenant could not pay, and our landlord client brought a commercial unlawful detainer action. The matter was settled after sending the first set of discovery requests. Our landlord client has their building back and can now try to lease to another to raise funds. The client is satisfied with the outcome, though frustrated with the cannabis industry at large and will likely never lease to a cannabis business ever again!
Ad Astra Client Gets to Remain in Possession of Farm
Our client, cannabis growers in Northern California, had a commercial lease for the farmland that they used to grow their cannabis. The landlord and our client have been friends since childhood. However, a dispute arose as our client refused to pay rent until the landlord fulfills his duties, such as removing trash from the property and dealing with an expired permit, to our lessee client. The landlord filed a commercial unlawful detainer against our client, claiming that the breach of the lease (which the landlord denied) was not a basis to refuse to pay rent. Unfortunately, commercial leases are different from residential leases. The client is a married couple who are expecting their first child at the end of a high-risk pregnancy, and the landlord filed the case such that the trial would be scheduled shortly after the birth of the baby. Ad Astra took over the case and made sure that the client and their family are free of stress throughout the negotiation. At the end, Ad Astra successfully negotiated a deal that kept our client in possession of the farm without much concession, and the baby was born healthy. We derive great joy out of outcomes like this where we make an immediate positive impact on our clients’ lives.