Our final replace on the first-ever hashish patent case, United Cannabis Corporation (“UCANN”) v. Pure Hemp Collective, Inc. (“Pure Hemp”) was again in July 2019. Lots has modified in the world since then (though the case was largely unremarkable), and the potential ending to this once-deemed “pivotal” case for the trade could now face a reasonably anti-climatic ending, no less than for now: chapter.
UCANN has filed a “Suggestion of Bankruptcy,” indicating that it filed for reduction underneath Chapter 11. The indisputable fact that it has filed for chapter mechanically acts as a keep – principally, a pause button, in another judicial continuing.
Section 362 of the Bankruptcy Code offers:
“… a petition filed … operates as a keep, relevant to all entities, of—
(1) the graduation or continuation, together with the issuance or employment of course of, of a judicial, administrative, or different motion or continuing towards the debtor that was or might have been commenced earlier than the graduation of the case underneath this title, or to recuperate a declare towards the debtor that arose earlier than the graduation of the case underneath this title …”
Interestingly, UCANN famous in its submitting that it absolutely supposed to proceed prosecuting its claims in the patent infringement case.
The Court had a distinct opinion. Judge William Martinez famous that the automated keep not solely utilized to UCANN’s claims towards Pure Hemp, but additionally Pure Hemp’s claims towards UCANN. UCANN solely indicated it supposed to proceed prosecuting its personal claims – and Martinez dominated it will be “extremely inefficient, and perhaps nonsensical” to go ahead on UCANN’s claims with out having the ability to concurrently go ahead on Pure Hemp’s counterclaims. Ultimately, pursuant to a Local Rule that enables the Court to shut a civil motion topic to reopening for good trigger, Judge Martinez did precisely that. The case is now formally closed – though the events could search to reopen the case if or when the chapter court docket lifts the keep or as soon as the chapter matter resolves.
We’ll report again with an replace if this case will get reopened. It’s a tragic ending, and doubtless all too acquainted for lots of companies proper now. Hope everyone seems to be staying protected and, as all the time, we’re right here to assist.