On February 13, 2020, the U.S. District Court enjoined Sulaiman Waleed Rodriguez from using TAPATIO's marks in selling its THC laced sauces.
The dispute began nearly a year ago on March 11, 2019, when Tapatio Foods sued for trademark infringement, unfair competition, and dilution arising from defendants sales of hot sauce infused with THC.
After the filing an Amended Complaint in April 2019, the defendants defaulted, resulting in the Court entering judgment last week.
TAKEAWAY
As more companies enter the growing cannabis industry, and specifically the edible and beverage cross-over markets, existing brands in the food and beverage space will need to closely monitor for potential infringements. On the flipside, cannabis companies should perform thorough trademark clearance searches to help avoid being sued for infringement.
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