Jay Mitra Interviewed in Forbes: “Cannabis Patent Trolls Are Coming—Is Your Company Ready?”

Jay Mitra was interviewed in a Forbes article titled “Cannabis Patent Trolls Are Coming—Is Your Company Ready?” The article discusses the potential surge in cannabis-related patents as state-level legalization expands and federal rescheduling appears increasingly likely. Early patents often secure broad claims, making profitable later-entrant companies vulnerable to patent assertion entities (PAEs), or patent trolls.

“The tech industry is not a stranger to non-practicing entities, whose business model is to assert patent portfolios against profitable companies to land licensing fees or hefty financial settlements,” said Mitra. "With federal legalization gathering steam, is the cannabis industry likely to witness a wave of infringement actions from non-practicing entities looking to cash in on the expanded marketplace?"

The answer, based on recent precedent, appears to be yes. Mitra points to one such case, “The cannabis industry has seen at least one such litigation resulting in a $2 million plus payout to patentee in Gene Pool Techs., Inc. v. Coastal Harvest, LLC, No. 21-cv-01328 (C.D. Cal.).”

The cannabis industry’s patent landscape is still relatively young. A defensive patent portfolio can serve as a deterrent and provide leverage in cross-licensing negotiations. Mitra suggested companies should:

• Conduct freedom-to-operate analyses to understand the patent landscape they’re operating with;
• Build a defensive patent portfolio rather than relying on a single patent;
• Set aside financial reserves for potential demand letters and litigation; and
• Identify legal counsel with patent litigation experience before a dispute arises.

Read the article. Subscription may be required.