Charlotte’s Web Holdings wins trademark infringement case

The cannabis company had gone after AAXLL Supply for trademark infringement and false advertising

Charlotte’s Web Holdings can breathe a small sigh of relief. Its Charlotte’s Web Inc. subsidiary had gone on the offensive against a company, AAXLL Supply Co. LLC, that had been trying to use the Charlotte’s Web name, which didn’t sit well with Charlotte’s Web leaders. The cannabis company launched an official complaint against AAXLL in April of last year and has now been handed a victory.

Charlotte’s Web had asserted that AAXLL was infringing on its trademark, as well as marketing false advertising claims in relation to its products. Specifically, the wayward company had tried to advertise certain products as sharing the same terpene profile of some hemp cultivars developed by Charlotte’s Web. However, since those cultivars are proprietary, it would have been impossible for any sharing to have taken place without formal written approval by Charlotte’s Web.

U.S. District Judge Yvonne Gonzalez Rogers listed to the arguments and handed down her ruling earlier this week. She agreed that “(a) the CHARLOTTE’S WEB Mark is a valid and protectable trademark in connection with hemp, CBD products, and any products or services related thereto; (b) the CHARLOTTE’S WEB Mark is not a generic term; (c) Charlotte’s Web’s State California and Colorado State trademark registrations for the CHARLOTTE’S WEB Mark are valid and enforceable; and (d) Charlotte’s Web owns all right, title, and interest in and to the CHARLOTTE’S WEB Mark.”

Going forward, AAXLL is prohibited from using the Charlotte’s Web trademark in any of its promotional material. The company had countersued Charlotte’s Web for “unfair competition” in retaliation to the lawsuit, but that claim was denied “with prejudice” by Judge Rogers.

Adds said Deanie Elsner, CEO of Charlotte’s Web Inc., “The Charlotte’s Web trademark is a cornerstone of our intellectual property portfolio. Today’s judgment underscores our ongoing commitment to vigorously protect our intellectual property, and we will continue to enforce our rights where necessary.”