The Rise of Cannabis Trademark Infringement Lawsuits
- JK Logix
- Oct 16, 2024
- 4 min read
Updated: Aug 22, 2025
Cannabis Copycats?
So, can you trademark cannabis logo? Cannabis dispensaries and grow facilities are increasingly adopting the names and logos of popular non-cannabis consumer products. While this might seem like a clever marketing tactic in a cutthroat industry where brand visibility is key, it has landed many businesses in hot water. The allure of instant brand recognition seems irresistible, but the risks are substantial. For example, cases tied to Starbucks copyright infringement have already highlighted just how costly missteps in branding can be.
This blog post aims to provide an overview of these cannabis trademark infringement legal battles, their implications, and how companies can avoid the marijuana mayhem that follows.
Table of Contents
Brand Battles: How Companies are Navigating the Cannabis Trademark Infringement Wars
Starbucks vs. Starbuds
One of the most notable cases involves Starbucks, the coffee giant, suing a cannabis company for using a logo strikingly similar to its own. The cannabis company named itself "Starbuds," creating a clear association with Starbucks. This lawsuit wasn't just about the name; it also targeted the logo that mimicked Starbucks' iconic green mermaid.
The Legal Grounds
Starbucks argued that the Starbuds logo and name could confuse consumers, infringing on its well-established trademark. The case highlighted how cannabis logo trademark disputes are treated seriously under intellectual property law, protecting brands from dilution and consumer confusion.
The Outcome
The lawsuit ended with Starbucks winning the case, forcing the cannabis company to rebrand your cannabis business and pay hefty legal fees. This case serves as a warning for other cannabis businesses considering similar tactics.
Better Made vs. Cannabis Companies
Closer to home, Detroit's iconic chip brand Better Made sued several cannabis companies for using its logo on cannabis products. The companies used packaging that closely mimicked Better Made’s design, leading to a lawsuit that made headlines.
The Legal Framework
Better Made's lawsuit was based on trademark infringement and brand dilution. The company argued that the unauthorized use of its logo could damage its reputation and confuse consumers. This is another reminder of how cannabis industry lawsuits can quickly escalate when established brands take action.
The Resolution
The lawsuit is still ongoing, but it has already cost the cannabis companies significant legal fees and damaged their reputations. For many entrepreneurs, choosing strong and original cannabis brand names is essential to avoid these costly conflicts and build lasting credibility.
Why Take the Risk?
Despite the clear legal risks, some cannabis companies continue to co-opt popular brand names and logos. The primary reason is the immediate brand recognition and the potential for increased sales. Yet, when a cannabis trademark dispute arises, the short-term gain often turns into long-term financial pain.
The Draw of Instant Recognition
Using a well-known brand name can attract immediate attention and customers. Still, this approach overlooks the potential legal consequences, as well as the ethical concerns tied to better-made cannabis branding strategies that mimic established products.
The Financial Gamble
While the initial boost in sales might seem appealing, the financial penalties from lawsuits can far outweigh the benefits. Companies risk not only legal fees but also settlements and damages that can cripple their finances.
Penalties and Fines
The financial repercussions of copyright infringement can be severe. In addition to legal fees, companies may face fines, settlements, and the cost of rebranding. The financial burden can be overwhelming, particularly for small and medium-sized businesses.
Legal Fees
Defending against a lawsuit can be incredibly costly. Legal fees can quickly add up, draining resources that could be better spent on legitimate marketing efforts. Many cannabis dispensaries have learned the hard way that cutting corners with branding only leads to expensive courtroom battles.
Settlements and Damages
In many cases, companies opt to settle out of court to avoid a prolonged legal battle. However, these settlements often come with hefty price tags, including damages that can significantly impact the company's bottom line.
Avoiding Legal Action
To avoid the pitfalls of copyright infringement, cannabis companies should focus on creating original and distinctive branding. Clear strategies around cannabis brand names can help businesses stand out while steering clear of legal trouble. Here are some practical steps to ensure your business stays on the right side of the law.
Conduct Thorough Research
Before finalizing your brand name and logo, conduct thorough research to ensure they don't infringe on existing trademarks. Taking the time to check databases and industry examples can prevent future cannabis industry lawsuits that drain money and credibility.
Consult Legal Experts
Working with legal experts can provide valuable insights into trademark laws and help you develop a brand that is both distinctive and legally sound. An attorney can also guide you through the process of registering your cannabis trademark for maximum protection.
Focus on Originality
Invest in creating unique branding that sets you apart from competitors. This not only helps you avoid legal issues but also builds a strong, authentic brand identity.
Engage with the Community
Building a brand that resonates with your target audience can be more effective than co-opting a well-known name. Engage with your community to understand their needs and preferences, and tailor your branding accordingly.
Conclusion
The wave of copyright infringement lawsuits in the cannabis industry serves as a cautionary tale for businesses looking to co-opt recognizable brands. While the allure of instant recognition is strong, the legal and financial risks far outweigh the benefits. By securing a proper cannabis trademark, focusing on originality, conducting thorough research, and consulting legal experts, cannabis companies can build strong, distinctive brands that stand the test of time.
If you're looking for more insights and expert advice on navigating the legal landscape of the cannabis industry, you should subscribe to our monthly newsletter “The Shield” where we share insider information, supply chain logistics best practices, and trends we are tracking in the Michigan marijuana industry.
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