Charlotte’s Web Strain Trademark Lawsuit Update: Charlotte’s Web Inc v AAXLL

San Francisco, California–(Newsfile Corp. – November 12, 2020) – AAXLL Supply Co is an innovator of Hemp Derived CBD products. District Judge Yvonne Gonzalez Rogers in the U.S. District Court for the Northern District of California heard oral arguments on Charlotte’s Web, Inc.’s Motion to dismiss certain counterclaims and strike some of AAXLL’s affirmative defenses.

Sharon Urias, a partner in the Litigation practice group at Greenspoon Marder LLP represented AAXLL, and Judd Lautner, an associate with Cooley LLP, represented Charlotte’s Web, Inc. during the oral arguments-appearing via web-based video conference.

In its numerous counterclaims, AAXLL alleges Charlotte’s Web, Inc engaged in false advertising, unfair business practices in violation of the California Business & Professional Code, and improper registration of state trademarks in California and Colorado. AAXLL seeks damages, attorney’s fees, cancellation of Charlotte’s Web, Inc’s state registered trademarks, and declaratory relief. AAXLL’s filing vigorously disputes Charlotte’s Web, Inc’s central allegation that Charlotte’s Web is not the name of a strain of hemp. AAXLL filings catalogues a tremendous body of published works, not to mention repeated admissions by Charlotte’s Web, Inc over the years, cementing the public’s and the industry’s understanding that “Charlotte’s Web” is a strain. AAXLL CEO Joseph Maskell notes that Charlotte’s Web, Inc itself referred to “the Charlotte’s Web strain” in its own 2019 public offering documents.

Maskell also states, “U.S. federal trademark law already dictates that cultivar or strain names are generic from the get-go, so the Charlotte’s Web name of the strain was never protected as a trademark. Charlotte’s Web, Inc cannot prevent the rest of the world from referring to Charlotte’s Web as a strain of hemp any more than a French winery could prevent the world from referring to Chardonnay as a varietal name of grapes.”

In July 2020, the United States Patent & Trademark Office rejected CWI’s trademark application for “Charlotte’s Web” in a final Office Action. The USPTO specifically found that the name “Charlotte’s Web identifies a particular strain of low THC, high CBD content Cannabis sativa plants” which does not function as a trademark.

AAXLL’s Maskell comments that USPTO’s rejection of Charlotte’s Web, Inc’s trademark application would demonstrate Charlotte’s Web, Inc made a serious mistake in adopting the generic name of a strain as its corporate and brand name, since everyone has the right to use the name of a strain. Maskell concludes, “The family run Balance CBD brand will not be bullied by Charlotte’s Web, Inc. It’s shameful that a large publicly traded corporation uses such tactics to intimidate competition to try to cover up their past mistakes.”

On the website “Is It A Strain?“, additional content is available. In both a short 7 minute video, and an extended 24 minute video multiple references to the Charlotte’s Web plant being referred to as the “Charlotte’s Web Strain” by individuals such as Joel Stanley (Co-Founder and Previous Chairman of the Board), Josh Stanley (Co-Founder) and Jesse Stanley (Co-Founder and Chief Cultivation Officer) are available to be viewed.

The case is Charlotte’s Web, Inc. v. AAXLL Supply Co LLC, Case No. 4:20-cv-02692-YGR in the Federal District Court for the Northern District of California.

About AAXLL:

AAXLL is a privately held branding and IP company that has developed leading cannabis and CBD brands for North American and European markets. Doctor formulated products with full line including CBD Oil Tinctures, CBD Topicals, CBD Pet Products, CBD Beverages and CBD Sexual Health. An emphasis on using sustainable organic and natural ingredients and ensuring a living wage for employees. As well as developing best in-class products for consumers to enjoy, AAXLL is a socially conscious organization that believes in philanthropic acts of kindness through its brands.

Most recently, through its market leading brand Balance CBD, a supplier of hemp derived CBD products, AAXLL launched initiatives to support front line workers to aid their response to COVID-19. Balance CBD also donated profits from its top selling line of CBD infused gummies to the Earth Alliance Amazon Forest Fund founded by actor Leonardo DiCaprio and others in 2020.

To learn more about AAXLL please visit https://www.aaxll.com/. To learn more about Balance CBD please visit https://www.balancecbd.com/.

AAXLL can be contacted at media@aaxll.com or at 1-415-651-3504.

SOURCE NEWSFILECORP

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