Federal cannabis trademark litigation is a difficult proposition. In a recent case filed by Wunderwerks, Inc., a company that sells beverages infused with CBD and THC additives, we see another unfortunate example of this. Federal courts, at least, are still no friend to the cannabis industry.
Wunderwerks had sued Dual Beverage Company LLC (“DBC”) in California district court for a variety of federal and state trademark infringement claims. Wunderwerks alleged that DBC infringed on Wunderwerks trademarks when DBC began to sell its W*NDER branded beverages. Most recently, Wunderwerks filed a motion for a preliminary injunction. The motion sought to restrain DBC from further causing consumer confusion by continuing to sell these products. That motion was denied, and the Court was very clear that the product itself was a huge reason for the denial.
To back up, the bar is admittedly very high for obtaining a preliminary injunction, in cannabis trademark litigation or standard trademark litigation. The moving party needs to establish four factors:
A likelihood of success on the merits; The moving party is likely to suffer irreparable harm in the absence of preliminary relief; The balance of equities tips in the moving party’s favor, and An injunction is