In a recent split decision, the Ninth Circuit majority affirmed the cancellation of cannabis grower Central Coast Agriculture’s trademark applications for its “Raw Garden” brand. The decision was made on the grounds that the company lacked a bona fide intent to use the marks commercially. On the other hand, one judge dissented, arguing that district courts should not have the power to interfere with and prematurely cancel trademark applications.
Central Coast Agriculture, a prominent cannabis cultivator, had applied for trademarks for its ‘Raw Garden’ brand. Nonetheless, the applications could not demonstrate a genuine intention to use the trademarks in commerce, leading to their cancellation.
The ruling sheds light on the considerable powers held by courts in trademark matters, even when applications are in progress. However, the dissenting argument emphasizes the potential overreach of these powers, suggesting that further dialogue may be needed on the issue.
For further details, you can read the Ninth Circuit’s decision on Law360.