Wednesday, July 27, 2022

DEA Rescinds Proposal to Ban Five Psychedelic Drugs

The Drug Enforcement Administration announced on Friday that it had rescinded a plan to prohibit five psychedelic compounds under federal drug laws, only weeks after the agency scheduled a hearing on the proposed ban.

In January, the DEA announced a proposed rule change to place five psychedelic drugs known as tryptamines under Schedule I of the federal Controlled Substances Act (CSA), a move that would prohibit access to the substances and create steep challenges to researching them. Reaction to the proposed ban was swift, with nearly 600 comments, most opposed to the move, submitted during a public comment period on the change. A DEA administrative law judge subsequently issued an order directing the agency to hold public hearings on the proposed ban.

Matthew X. Lowe Ph.D., research director at the psychedelic research nonprofit organization Unlimited Sciences, tells High Times that the psychedelic drugs that the DEA had sought to ban have therapeutic potential that should be explored through research.

“The compounds 4-OH-DiPT, 5-MeO-AMT, 5-MeO-MiPT, 5-MeO-DET and DiPT are lesser-known psychedelic substances of the tryptamine class,” Lowe wrote in an email. “The effects of these psychedelic compounds on humans were first documented by Alexander and Ann Shulgin, who famously synthesized and studied the effects of these and hundreds of other psychoactive compounds.”

“Research is limited on these compounds, and little is known about their pharmacological properties, metabolism, toxicity and therapeutic potential, which is precisely why we must continue to support research endeavors,” Lowe continued. “The DEA’s reversal of its plan to ban these compounds will allow crucial research to better understand these compounds.”

Hearing Scheduled, Then Canceled

In early July, the DEA published a notice announcing that it would hold a hearing on the proposal to prohibit the drugs. The agency wrote that the proposed ban “was based primarily on the scientific and medical evaluations and recommendations provided by the Department of Health and Human Services (HHS) to DEA. In those submissions to DEA, HHS concluded that these five substances meet the criteria for placement in schedule I as they all have a high potential for abuse, no currently medical use in treatment in the United States, and a lack of accepted safety for use under medical supervision.”

On July 22, the federal law enforcement agency changed course, saying that a hearing scheduled on the matter had been canceled because the DEA had rescinded the proposal. Instead, the agency said that it would seek an updated review of the compounds from HHS. 

Proponents of psychedelic research hope that the new review will lead to a decision to place tryptamines in a lower schedule under the CSA. It is not yet clear how long it will take HHS to complete the new review of the compounds.

“The decision to get an updated evaluation will allow important research and development to continue that could lead to lifesaving medicines and a better understanding of this drug class,” said Matt Zorn, an attorney representing a client with a research interest in the tryptamines. “I’m glad the Administrator and DEA took a hard look at the science and data before it.”

Lowe said that the DEA’s reversal of its proposal to place the psychedelic compounds under Schedule I of the Controlled Substances “is an unprecedented victory for the continued momentum of research exploring the therapeutic potential of psychedelic medicine.”

“Substances categorized with a Schedule I classification are considered to have ‘no currently accepted medical use and a high potential for abuse,’ and this classification would severely restrict research and building scientific knowledge of these compounds,” he said. “The therapeutic potential of psychedelics is now widely recognized and we must continue to advocate for research that could shed light on our understanding of both the risks and benefits associated with psychedelic medicine.”

The post DEA Rescinds Proposal to Ban Five Psychedelic Drugs appeared first on High Times.



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Goods and Services and Canna Trademarks

Goods and services (G&S) identifications are a critical part of a cannabis trademark application, as with any other trademark application. An improper identification can delay an application, and in the worst cases prove fatal. Cannabis brands in particular have to be very careful when it comes to G&S.

Trademark rights are linked to specific goods and services (or, said differently, products). If my neighbor starts using the name Gina’s Lawns in connection with her lawn care business, she can establish trademark rights in that name in connection to lawn care services. Nothing prevents me from using the same name in connection to my own business selling, say, cell phone cases. Needless to say, it would be an odd choice for a cell phone case business, even if I wouldn’t be infringing on Gina’s trademark rights.

For cannabis brands, the key issue when it comes to identifying goods and services (and indeed trademark applications more generally) is the legality under federal law of the identified products. Simply put, under what is known as the lawful use requirement, USPTO will not register a trademark in connection to goods and services that are unlawful according to federal law. This includes marijuana, as defined in 21 U.S.C. § 802(16), which is a Schedule I substance under the Controlled Substances Act (CSA). It also includes many hemp products that are considered illegal under FDA‘s interpretation of the Federal Food, Drug, and Cosmetic Act (FD&C Act or FDCA). Beyond cannabis, USPTO has refused to register trademarks in connection with products such as Cuban cigars and certain insecticides.

The legal justification for refusing to register trademarks in connection to marijuana is debatable, but at least a bright line exists that canna brands can follow. There is (far) less of a bright line when it comes to hemp products, with their regulation by FDA very much in flux, but at least in certain cases the illegality under the FD&C Act of certain products is pretty obvious (for example, in the case of a CBD food). But when we get to the application by USPTO of the drug paraphernalia laws, things get wacky.

Drug paraphernalia is broadly and subjectively defined under federal law. As we have explained before, “this creates a fraught situation from a legal standpoint, as an imported product’s legality may hinge not on its immutable characteristics, but rather on subjective factors.”

Take a water pipe made in Jordan. If the importer of that product is a company that sources Middle Eastern products, including flavored tobacco, and refers to the pipes as shisha or argileh on its website, they are unlikely to face issues upon entry into the United States on drug paraphernalia grounds.

On the other hand, if the importer calls the product a water bong and alludes to cannabis on its advertising, there is a good chance the products will be seized as drug paraphernalia.

Taken to an extreme, this conception of drug paraphernalia could lead to innocuous products such as lighters and ashtrays to be considered drug paraphernalia. Sadly, things often are taken to the extreme. And if it’s silly for lighters to be seized as drug paraphernalia, it is downright absurd for USPTO to take issue with the identification of lighters as goods, on drug paraphernalia grounds.

But that is exactly what’s happening. Recently, USPTO has denied applications for trademarks used in connection with several smokers’ articles, including lighters, rolling papers, and ashtrays. In order for the applications to go through, USPTO required the addition of language to the G&S identification clarifying that the products were to be used exclusively with hemp.

Look, a lighter is a lighter, and an ashtray is an ashtray. Yes, the lighter could be used to ignite a marijuana cigarette, but it could also be used for a host of activities that are not illegal under federal law. Should G&S identifications for firearms include caveats that they are not to be used to commit crimes?

In any case, whether the lighter or ashtray or rolling paper is used with marijuana or hemp or tobacco is a question of fact that will be determined by the user of the products. Conditions encountered by law enforcement when they seize drugs can in some instances support the characterization of a product as paraphernalia, even in cases where there are legal uses for that same product. However, by definition, such products cannot be drug paraphernalia prior to use, just as guns and cars can only become instrumentalities of crime after someone uses them.

There is also a whiff of prejudice in USPTO’s actions. Are lighters sold by canna brands more likely to be used to smoke marijuana than those sold at gas stations? Maybe, but would anyone seriously argue that gas stations lighters are not broadly used to smoke marijuana?

There is clearly a bias against cannabis brands, and the more you think about it, the more it seems like USPTO just has a general beef against cannabis companies. Because this is clearly not about what lighters are going to be used for. And if it is, then it might be even more concerning that government officials live in a world in which marijuana smokers get their lighters from cannabis stores, while those lighters sold at CVS are only used for wholesome purposes like tobacco smoking.

We can and should point out the ridiculousness of this approach: USPTO should never object to the G&S identification of a lighter, period. But, at least, for now, it is what it is. To avoid issues, cannabis brands need to identify their goods and services carefully.

The post Goods and Services and Canna Trademarks appeared first on Harris Bricken Sliwoski LLP.



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Tuesday, July 26, 2022

New Jersey stands up to weed companies for disobeying patient-first laws

Big fines from the tiny state set a stern example for how regulators nationwide should deal with multi-state cannabis companies.

The post New Jersey stands up to weed companies for disobeying patient-first laws appeared first on Leafly.



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Will delta-8, delta-10, or HHC make you fail a drug test?

Unclear which hemp-derived cannabinoids like delta-8, delta-10, or HHC will flag a drug test? Never fear, you’ve come to the right place.

The post Will delta-8, delta-10, or HHC make you fail a drug test? appeared first on Leafly.



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Singapore Executes Man for Cannabis Trafficking

As Amnesty International pleads to stop Singapore’s fifth execution in under four months, one man, whose name is not being released, was executed by hanging at the Changi Prison Complex in east Singapore for the crime of trafficking cannabis. 

Singaporean executions are carried out by “long-drop hanging”—usually taking place at dawn. The country is notorious for its use of corporal and capital punishments, and the country’s hanging system has been criticized for at least the past 20 years. During canings, for instance, a 1.2 meter-long cane of about 1.2 centimeters in diameter is used to beat the perpetrator, sometimes for drug offenses. For the crime of trafficking cannabis, the death penalty is mandatory.

Thanks to activists like Kokila Annamalai, we know when severe injustices amid the War on Drugs take place in the farthest stretches of the globe. People like Annamalai are tired of executions for drug-related crimes, especially when it involves cannabis and other harmless crimes.

“We have confirmation that a 49-year-old Singaporean Malay man was executed today, 26 July, at Changi Prison,” Annamalai tweeted. “He has lived in prison since 2015, after being convicted of trafficking in cannabis (marijuana). He was sentenced to the mandatory death penalty.”

Activists say racism is part of the equation, as the region is allegedly prone to racially-biased decisions during the legal process. The 49-year-old Malay man executed for cannabis trafficking was one of 17 prisoners who had filed a suit accusing the Singaporean government of racial bias in their prosecutions in capital punishment cases. Unfortunately, the lawsuit was tossed out and nearly anyone involved in the case was allegedly targeted—even the defense attorney.

“This is the 6th confirmed execution in a span of 4 months,” Annamalai continued in subsequent tweets. “He was one of 17 prisoners who had filed a historic suit accusing the Singapore state of racial bias in their prosecutions in capital punishment cases. The suit was thrown out last year and their lawyer M Ravi was slapped with heavy fines after being accused of abuse of process by the attorney-general (AG).”

Singapore publicly reveals very little, if any information about its executions, which come in the form of hangings. Local anti-death penalty non-governmental organizations (NGOs) like Transformative Justice Collective ask questions regarding the deaths and the surrounding circumstances. They get information through other prisoners or inmates’ relatives, which is the only way information is possible.

Singapore officials also executed another man, Singaporean Nazeri Lajim, 64, with a long history of drug use and other drug offenses, who had been sentenced in 2017 for trafficking 960 grams of heroin.

Earlier this month, VICE World News followed the families of people on death row in Singapore due to drug charges. They found clemency appeals to the president were rejected and hopes were destroyed in one of the harshest places on the planet to be caught with drugs.

“This morning, the family of Kalwant Singh, a Malaysian on death row in Singapore, was informed that his execution has been scheduled for next week, 7 July 2022,”  the Transformative Justice Collective tweeted on June 29.

Singh was arrested in 2013 for drugs. He was 23 years old then and has spent the past nine years in prison.

According to activists, executions by hanging came to a standstill during COVID-19.

VICE World News reports that Malaysia and Singapore shared a gung-ho approach to the death penalty, but both countries’ approach to drugs were originally rooted in British colonial-era laws. But then nearby in Thailand, cannabis has been decriminalized, suggesting drug reform is overdue in the corner of the globe.

The post Singapore Executes Man for Cannabis Trafficking appeared first on High Times.



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Illinois Trumpets 50% Rise in Adult-Use Pot Sales, Tax Revenue

It has been a 50-50 year for Illinois’ adult-use cannabis program. As in a 50% increase in sales, and a 50% increase in tax revenue.

The state’s governor trumpeted the figures in an announcement on Monday, saying that Illinois “has seen a 50% increase in total tax reported from adult-use cannabis, from $297.7 million in fiscal year 2021 to $445.3 million in fiscal year 2022,” as well as a 50% increase in adult-use cannabis sales, from $1 billion in fiscal year 2021 to $1.5 billion in fiscal year 2022.

“Illinois has done more to put justice and equity at the forefront of this industry than any other state in the nation and has worked to ensure that communities hurt by the war on drugs have had the opportunity to participate,” Illinois Gov. JB Pritzker, a Democrat, said in the announcement. “The $1.5 billion in sales of adult-use cannabis in Illinois translates into significant tax revenue with a portion of every dollar spent being reinvested in communities that have suffered for decades.”

The announcement said that “cannabis tax disbursements to local governments saw a significant jump from fiscal year 2021 to fiscal year 2022, increasing 77% from $82.8 million to $146.2 million,” and that under the state’s recreational cannabis law, “25 percent of tax revenue generated from cannabis sales must support communities that are economically distressed, experience high rates of violence, and have been disproportionately impacted by drug criminalization.”

Illinois’ new cannabis law has become a centerpiece of Pritzker’s first term, with the Democrat up for re-election this year.

Pritzker signed a measure legalizing recreational pot use for adults in 2019. The state’s regulated cannabis market opened for business at the start of 2020.

In January, the Illinois Department of Financial and Professional Regulation (IDFPR) reported that adult-use weed sales doubled in 2021, going from around $669 million in the inaugural year of 2020 to $1,379,088,278.61 last year.

Along with the formation of the regulated market, Illinois’ new marijuana law has also focused on remedies toward individuals and communities who have been adversely affected by the War on Drugs.

When the new law took effect at the start of 2020, Pritzker marked the occasion by issuing more than 11,000 pardons for non-violent cannabis offenders.

“We are ending the 50-year-long war on cannabis,” Pritzker said at the time. “We are restoring rights to tens of thousands of Illinoisans. We are bringing regulation and safety to a previously unsafe and illegal market. And we are creating a new industry that puts equity at its very core.”

Last month, Pritzker announced plans to award 185 new cannabis dispensary licenses with a particular focus on non-white applicants.

“Today marks the beginning of the next chapter of the most equitable adult-use cannabis program in the country,” Pritzker said in announcing that plans for the lottery. “After signing the most equity-centered program in the country into law, expunging thousands of low-level cannabis convictions, and investing tens of millions of dollars in cannabis proceeds in communities failed by the war on drugs, we are about to more than double the number of adult use cannabis dispensaries in Illinois. This means countless more opportunities for communities that have suffered from historic disinvestment to join this growing industry and ensure its makeup reflects the diversity of our state.”

In the announcement on Monday, Pritzker’s office said that, to date, “the State has awarded $113.5 million in grants, using funds generated from taxes on adult-use cannabis sales to support and invest underserved communities through Illinois Criminal Justice Information Authority’s Restore, Reinvest, and Renew (R3) Program.”

The post Illinois Trumpets 50% Rise in Adult-Use Pot Sales, Tax Revenue appeared first on High Times.



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Retailers Complain Weedmaps is Advertising Illegal Dispensaries Again

Weedmaps is under fire for advertising illegal or unlicensed cannabis retailers on its site in California. Several businesses have filed complaints that claim Weedmaps is working with these businesses despite their lack of legal backing.

These complaints were filed last month and in May with the California Department of Cannabis Control (DCC) and the U.S. Securities and Exchange Commission (SEC). They claim that Weedmaps is “allowing vast amounts of black market activity through their website, and they know about it but won’t do anything about it.”

These illegal businesses have long been an issue in California, and now, businesses are fed up that they are even getting a legal leg up with advertising despite their status. Those upset about it claim that the legal marketplace is being undermined by the massive cannabis advertising and content company. 

If it is determined that Weedmaps is guilty of this, they could face serious fines, which would be a major blow, since they are traded in the stock exchange, but it’s not clear whether or not they will be found guilty. Four years ago, the company got in trouble for something similar regarding illegal ads, and successfully removed the ads from its website in 2020 before its parent company went public. 

The new complaints from this year were filed by Canex Delivery, a Los Angeles-based cannabis company. The company claimed that they initially went to Weedmaps with their concerns, but no action was taken. CEO Jim Damask and Chief Financial Officer Joseph Bitzer provided documents and screenshots to back up these claims once they took legal action, and alleged that the ads promoted the illicit market. 

The official SEC complaint reads that their company “suffered significant losses due to Weedmaps – quite possibly into the tens of millions (of dollars).”

They also claimed that Weedmaps is selling ads to these illegal companies to turn a profit, and wrote that “by allowing illegal operators to advertise on their site they are misleading investors by unethically increasing their revenue, which is being reported as legitimate in quarterly reports.”

In response, Weedmaps simply went on the record with MJBizDaily as saying  “We have not received any communications from the DCC or SEC regarding complaints made by Jim Damask and/or (Joseph) Bitzer of Canex Delivery.”

The company declined to provide further comment, despite repeated requests from MJBizDaily.

A spokesperson for the DCC said California regulators are investigating, and the SEC declined to comment.

It also has been confirmed that as of June 28, Weedmaps had live web pages advertising for multiple illegal retailers and products. The nature of those ad deals, how this impacts the competition, and whether or not the official report will find the company at fault, has yet to be determined. 

The ads were for Southern California delivery companies, but unlike Canex, they are not legally licensed businesses. 

The ads also appear to violate California, and even Weedmaps, policies. They do things like claim illegally strong edibles, including 1,000 milligram brownies and gummies, and don’t show a state license number, or if they do, it’s a number that doesn’t match the business posting the ads. They also advertise illegal operating hours such as delivery until midnight or later. 

Canex’s Bitzer and Damask filed the complaints with the California Department of Cannabis Control in late May and with the SEC on June 4.

A DCC spokesperson claimed that this is still an “open investigation,” saying, “Those dealing with unlicensed activity are immediately referred to our law enforcement division. DCC provides publicly accessible data, available to private companies like Weedmaps, so it is simple to follow the law by verifying whether a cannabis company is licensed in California.”

As this case continues, it will become clear whether or not Weedmaps will be held accountable for these ads and the impact they have on local businesses. 

The post Retailers Complain Weedmaps is Advertising Illegal Dispensaries Again appeared first on High Times.



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