Wednesday 31 August 2016

The opportunities and risks in on-demand cannabis

As in the alcohol industry, tech platforms connect buyers with sellers but don't deliver themselves

by Ronny Kerr
There can be no doubt that the promise of "on-demand" has fueled enormous growth in the technology industry over the past half decade. Whether it's lunch or dinner coming from DoorDash or Munchery, groceries coming from Instacart or Shipt, toiletries coming from Postmates or Google Express, or super-fast deliveries from Amazon Prime or Deliv, one thing is clear: if you want an item or service instantly, you can bet there's a business to answer the call.

The quintessential on-demand service is Uber, which has raised over $12 billion in outside capital for an app that sends a ride your way at the tap of a button. It's that simple.

So what about the cannabis space? Without getting into the stereotype of a cannabis user as too lethargic or uninspired to leave the couch, we can assume that most ordinary consumers would welcome the option to have their product delivered. If people want dinner and groceries delivered, why not have their cannabis delivered?

Parallels in the alcohol industry
As when we discuss other cannabis-related issues, the question inevitably turns to this: what are legitimate businesses already doing in analogous industries?

Over the past few years, a host of services have emerged to offer alcohol deliveries in under an hour.
One such company is Drizly, which earlier this month secured $15 million in Series B funding led by Polaris Partners. The service offers a beer, wine, and liquor marketplace in 23 markets across the U.S. and Canada.

Similar services are Minibar (which operates in 26 U.S. cities), Saucey (serving Los Angeles, San Francisco, San Diego, and Chicago), and Klink (serving Washington, D.C., Dallas, and Miami).

Even Instacart, one of the big names in grocery delivery, has partnered with Total Wine & More to offer delivery of wine and other products to six states.

Interestingly enough, many of these startups appear to be operating in a legal gray area. One resource from the National Conference of State Legislatures suggests that, in most cases, the only alcoholic beverage that can be shipped is wine. And yet these companies continue to operate as if they're perfectly legal.

The discrepancy is these companies technically don't handle the actual delivery of the product. As a spokesperson for Minibar explains:

"We actually do not ship alcohol; nor do we sell alcohol. Minibar Delivery is a technology platform that connects consumers to local licensed retailers who sell wine, liquor, and beer to be delivered.

All sales are made by a licensed retailer who delivers the order (and the stores require proof of age on delivery). Thus, shipping laws are not applicable, but rather local delivery laws, which vary by state."

Indeed, if you go to one of these sites, you must have a store operating in your area for alcohol to be delivered. When you complete your order on Minibar, which has just under 200 stores in its network, the site sends a notification (via email, fax, phone, or its online supplier portal) to the store.

The store then confirms the order, packs it up, and sends it out for delivery. After the sale, the store keeps the revenue from the sale, but it pays Minibar a monthly marketing fee to be listed on the site.
So while the process may seem seamless to the buyer, there are a number of moving parts behind the scenes to get alcohol delivered.



 
Tapping into on-demand cannabis

When it comes to ordering cannabis online for delivery, the process largely works in the same way.

One of the biggest names in the space, with $20 million in financing from Fresh VC, DCM Ventures, and Winklevoss Capital, Eaze connects verified medical cannabis patients with state-compliant dispensaries across California.

Though the company handles the initial order along with verification of the medical cannabis ID card, it then passes on the order to a dispensary which fulfills the order and employs its own drivers for deliveries. And, just as with the alcohol delivery companies, Eaze doesn't take a cut of individual transactions. Instead, the company charges dispensaries what a spokesperson describes as an "overall technology fee."

Today, Eaze operates in approximately 80 cities across California, letting users order medicinal cannabis through the website. In fact, the company wants to make the entire process as "easy" as possible, going as far as offering medical marijuana consultations over live video for $30.

Eaze isn't the only one offering on-demand cannabis delivery, however. A quick search for cannabis delivery returns dozens of services promising delivery of the product for both medical and recreational use. There's Trees (delivery in the San Francisco Bay Area), Greenz Direct Delivery and Speed Weed (delivery throughout California), and Marijuana Market and Your Cannabis Orders (nationwide deliveries)—just to name a few.

Opportunities and risks for on-demand cannabis
With cannabis still illegal under federal law, companies in the business of delivering cannabis for either recreational or medicinal use face significant risks.

Earlier this month, the Drug Enforcement Administration (the “DEA”) announced its decision to deny two petitions to reschedule cannabis under the Controlled Substances Act (the “CSA"), tampering hopeful expectations from the industry that legalization is around the corner.
And even in states with a grey area of legality, progress is still slow.

Since 2004, the state of California has only issued about 85,000 ID cards for medical cannabis patients. But because the cards are only valid for one year, there are less than 10,000 patients with currently valid cards. So California isn't exactly a massive market today. The states that have legalized cannabis for recreational use—Colorado, Washington, Oregon, and Alaska—would be better candidates as big delivery markets.

As yet, however, no large-scale platform like Eaze has emerged in these markets to offer up on-demand cannabis. Today, cannabis delivery appears to be largely handled by separate dispensaries on an individual basis.

Notably, eight states will be voting on the legalization of cannabis this November, which could exponentially widen the audience for Eaze and similar on-demand cannabis delivery companies.

California voters, for example, will decide whether to pass the Adult Use of Marijuana Act (Prop 64).

The potential outcome is huge: Dixie Elixirs CEO Tripp Keber told me his company's consumer base tripled overnight when Colorado legalized cannabis for recreational use.

"We were making more money in an eight-hour period than we were in previous months," he said.

It's likely that Eaze, its competitors, and its investors are simply expecting that, despite the slow progress in our legal system, legalization of cannabis will come sooner or later. And when it comes, the rapid acceleration in business will have been worth the wait.

Marijuana: Should Pot Be a Schedule II or III Substance?

Nikelle Murphy

marijuana greenhouse
A worker at a marijuana greenhouse | Uriel Sinai/Getty Images
In mid-2016, the Drug Enforcement Agency (DEA) quietly announced it would be issuing an updated classification for marijuana under the Controlled Substances Act. Under the law, drugs like cannabis, methamphetamine, cocaine, and other substances are organized by how addictive they are, and how likely they are to be abused.

Many people wondered whether the DEA would reclassify marijuana as a Schedule II drug, thus loosening some of the restrictions that are currently placed on pot. However, the agency announced in mid-August that the drug would remain a Schedule I substance, effectively stating it has no acceptable use, medicinally or otherwise.

Still, the debate about cannabis’s classification rose to the forefront. It’s unlikely the federal government will move to reclassify marijuana anytime soon, but that hasn’t stopped several states from legalizing it anyway. In addition, public opinion is increasingly in favor of allowing cannabis use for medicinal and recreational purposes. Former presidential candidate and Vermont Senator Bernie Sanders introduced a bill in November 2015 that would deschedule marijuana altogether, essentially treating marijuana like we do alcohol or cigarettes.

The bill was supported by a former surgeon general, but didn’t pick up enough support to pass the Senate.

Removing marijuana from the Controlled Substances Act isn’t likely to happen anytime soon, but changing its classification could go a long way toward allowing more research and giving cannabis advocates a boost. Here’s a look at the most likely changes, and what they would mean for the pot industry.

Marijuana: A Schedule I substance

cannibis joint and herb, marijuana
A cannabis joint | iStock.com
Since the Controlled Substances Act was made law in 1970, marijuana has been listed as a Schedule I drug. These drugs are characterized as having “a high potential for abuse” and have “no currently accepted medical use.” Cannabis is in the good company of heroin, LSD, ecstasy, and peyote under this classification, which also severely limits research and makes them illegal for any use on the federal level.

Under the law, there are five schedules of drugs. Marijuana sits in the most restrictive category, with each one getting more lax through the progression. Schedule II drugs are still considered to have “a high potential for abuse,” but can be prescribed by a doctor. Some of these include cocaine, Vicodin, OxyContin, Adderal, and Ritalin. Moving cannabis to a Schedule II drug would slightly relax the governmental red tape surrounding research, the Brookings Institution points out, but there are still severe restrictions on prescribing the drug.

Schedule III drugs, the lowest classification most experts believe marijuana could be moved to, have a “moderate to low potential for physical and psychological dependence,” according to the DEA. These substances include Tylenol with codeine, ketamine, and testosterone.

What classification should cannabis receive?

marijuana plant
Marijuana plant | iStock.com
The classification change necessary depends on the overall goals marijuana advocates have in mind. If the idea is simply to allow researchers more access and give doctors the ability to write prescriptions, a change to Schedule II would be all that’s necessary.


However, if the hope is to boost the industry and give it more legitimacy, it will need to move to Schedule III for long-term success. The reason lies within the tax code. Right now, the banking industry is extremely hesitant to get involved with cannabis businesses, which means it’s still basically an all-cash operation. Banks could feel more comfortable with a Schedule II designation, but further loosening of federal laws at Schedule III would make that even more likely.


Right now, people in the marijuana industry are restricted from writing off any business-related expenses on their taxes. As a result, they don’t get the same advantages other small business owners receive in the form of tax breaks. That tax restriction, formally called IRS rule 280(e), applies to Schedule I and II businesses. At a Schedule III level, however, cannabis-related businesses could start receiving those tax breaks, making it easier for them to go into (and stay in) business.

Moving to marijuana to Schedule III is what Colorado regulatory attorney Tom Downey advocates for in a column in the Denver Post. Working at the federal level in that way will also allow states to move forward with additional monitors on recreational and medical marijuana, Downey writes, while also allowing states to continue reaping financial rewards from pot-related taxes.

Other considerations

marijuana protest to legalize cannabis
Marijuana protest | Kenzo Tribouillard/AFP/Getty Images
Whether the drug will eventually be reclassified remains to be seen. However, there would still be lingering issues that a simple listing change wouldn’t fix. For one, changing the scheduling for cannabis “doesn’t solve the conflict between the states and federal government,” Bill Piper, senior director of national affairs at the Drug Policy Alliance, told Leafly. “De-scheduling would be ideal, but ultimately what we need is overall reform of the [antiquated], non-scientific scheduling system.”

Some groups, including Smart Approaches to Marijuana, say changing the classification would be nothing more than a “symbolic victory” for advocates who want to legalize the drug. They argue that research is still happening, and little else would change in the industry as a whole.

However, others would say that symbolism is sometimes all that’s needed to move the needle on otherwise controversial subjects.

New federal marijuana growing regulations a ‘small step forward,’ activist says

by  Dan Ferguson - Langley Times

A Langley marijuana activist says the new federal law that restores licensing for small medicinal marijuana growing operations is a move in the right direction.

“All things considered it does seem like a step forward, albeit, a small one” Randy Caine told the Times.

“On the upside, as medical marijuana isn’t subsidized like other meds, the right to grow will help some relieve the financial burden,” Caine said.

“The problem remains that many, although permitted to grow, aren’t able or knowledgeable enough to do so. Think about it for a second, what if the only way you could access penicillin was to make it yourself from moulding bread?” Caine added.

“The parallel isn’t too far off.”

Caine, who owns a chain of hemp-based novelty stores, has lobbied for legal medicinal marijuanua for years.

He once operated a Langley City marijuana dispensary that was closed down by police and founded the Releaf Compassion Centres that provide counseling to people seeking to use cannabis for medical purposes.

The new Access to Cannabis for Medical Purposes Regulations, which took effect on Aug. 24, allow individuals to produce a limited number of plants based on their daily dose as prescribed by a doctor, whether it is grown indoors or outdoors.

It appears to be similar to the home-growing licences that were issued until 2014 when the then-Conservative government made moves to outlaw them and force approved patients to buy only from licensed commercial producers.

A Federal Court judge ruled last February that was unfair to medical marijuana users who wanted to grow their own and gave Ottawa six months to adjust the law accordingly.

A statement issued by the federal department emphasizes the new regulations provide an immediate solution to the federal court ruling, but shouldn’t be interpreted as a long-term plan for medical access.

Caine calls it “a Band-aid measure.”

He would like to see cannabis added to the list of drugs already subsidized by government healthcare programs as well as “access points” for medicinal marijuana users that would provide support and guidance and “a clearer separation between medical necessity and non-medical use.”

Health Canada says it will evaluate how the new system performs in providing reasonable medical access to cannabis, but will also study other potential delivery models, such as via pharmacies.

Municipalities, meanwhile, continue to be concerned that the proliferation of grow-ops in residential areas “with a variety of associated health and safety concerns,” will now continue unabated with the reinstatement of home grow licensing.

Surrey Fire Chief Len Garis, whose testimony about the dangers of home growing was largely dismissed by the federal court, said he remains concerned about electrical fire safety risks from amateur rewiring and other hazards such as mould and herbicide contamination.

“We’ve been into almost 2,000 of these places and every one of them had a problem,” Garis said, referring to the City of Surrey’s system of inspecting home grows it identifies, usually from electricity use records.

The federal government continues to take the position that cannabis dispensaries are illegal storefront suppliers and subject to enforcement.

The Reek of Hypocrisy Behind Federal Marijuana Laws

By Jill Richardson

For a few brief months, it looked like America might take a step closer to sanity. And then came the news: the Obama administration will not loosen federal restrictions on marijuana after all.


Before delving into the issue of marijuana, consider its two fellow “gateway drugs:” alcohol and tobacco.

Aside from the potential benefits from drinking a glass of red wine, neither one is good for you.

Alcohol can be incredibly harmful, either via acute alcohol poisoning or via chronic destruction to your life and liver. Cigarettes are always bad for you.

All three—alcohol, tobacco, and marijuana—supposedly entice users to take a timid step into the world of drug use and then find themselves plunged all the way in with “harder” drugs like heroin, cocaine, or meth.

And while illegal drugs like meth and heroin can ruin your life or kill you, so can legal ones like alcohol. Just ask any recovering alcoholic.

But among the three so-called gateway drugs, marijuana alone is illegal according to the federal government.

Marijuana is classified as a Schedule I drug, defined as having no medical use and being subject to abuse. It’s more regulated than cocaine, which hospitals have on hand for medical use.

But half of all U.S. states disagree and have enacted laws to legalize medical marijuana at the state level.
So recently, two governors asked the feds to take another look at its classification. The Obama administration and the DEA had a chance to ask themselves—should marijuana really be on the same list as heroin, as it is now?

Yes, they decided, it should.

They’ve agreed to expand the availability for “legitimate researchers” to conduct clinical trials to determine whether marijuana has any legitimate medical uses, but they currently say there’s no credible evidence that it does.

The hypocrisy is unbelievable, on two levels.

First, because alcohol and tobacco are allowed, even though people can abuse them, and even when they provide no medical benefit.

Second, because we use an entirely different standard to determine the safety and legality of any number of other chemicals.

In most cases, our laws treat chemicals as safe until proven dangerous. Marijuana, on the other hand, is being held to a higher standard. It’s not even that it’s considered dangerous until proven safe. The government says that they won’t lift regulations on it until it’s provenbeneficial.

In the last 40 years, the EPA banned just five out of over 80,000 chemicals used in the U.S. So while asbestos was still legal, even after scientists knew how toxic it was, people were locked up in jail for smoking pot.

To be fair, Congress just passed a reform of toxic chemical regulations this year. But the new law only goes so far. The EPA is currently working its way down a list of 90 high-priority chemicals that are both toxic and legal, including asbestos and arsenic.

Why do we have one standard for thousands of chemicals—considered safe until proven otherwise—and another for marijuana?

Imagine a world in which asbestos had to be proven safe before it could be sold legally. How many horrible deaths from mesothelioma would’ve been prevented?

Meanwhile, what if marijuana, which has caused zero deaths by overdose, was considered safe until proven otherwise?

We could regulate it just like we do tobacco and alcohol. We could say no advertising its use, no driving or working while high, no selling marijuana to anyone under 21, and so on.

The decision to keep marijuana illegal on a federal level until it’s proven to be beneficial reeks of hy-pot-crisy.

Marijuana legalization Florida 2016: Here's what you need to know about Amendment 2

Marijuana legalization Florida 2016: Here's what you need to know about Amendment 2

By Will Drabold

Florida voters are poised to make some patients in the state users of medical marijuana. So far, 25 states and the District of Columbia have legalized medical marijuana while three states and D.C. have legalized marijuana for recreational use. Besides Florida, Missouri and Arkansas will also have medical marijuana legalization on the ballot in November. 

More than 60% of Floridians must vote to support Florida Amendment 2 to legalize medical marijuana in the state constitution. Polling has found a high percentage of voters favor medical marijuana. 

Florida already allows use of cannabidiol, or CBD, a compound found in marijuana that is favored for pain and anxiety relief without the psychoactive effects of THC. Earlier this year, the state passed legislation allowing people who are terminally ill to use medical cannabis. 
Debate over Florida Amendment 2 centers around the need for medical marijuana and whether the proposal is a gateway to recreational legalization of cannabis.

Here's what you need to know about this year's amendment: 
The amendment would allow doctors to send patients to state-regulated dispensaries to pick up marijuana for a medical condition, like cancer, epilepsy or PTSD.
Marijuana legalization Florida 2016: Here's what you need to know about Amendment 2
Florida Attorney General candidate Jim Lewis, who ran on a platform of legalizing marijuana, holds a sign during a campaign rally on October 12, 2010 in Fort Lauderdale, Florida.
Source: Joe Raedle/Getty Images

What the amendment does

A doctor recommending a patient take marijuana would not technically be a prescription, as cannabis is still classified as Schedule I — drugs that are considered highly addictive with no medical use — under federal law. Because of that classification, a doctor could lose their license if they prescribe marijuana. 

The amendment could set up thousands of medical dispensaries around Florida. Some dispensaries already exists because of a 2014 Florida law that allows doctors to give patients a low-THC forms of cannabis called "Charlotte's Web."
Marijuana legalization Florida 2016: Here's what you need to know about Amendment 2
Source: Seth Perlman/AP

The case for the amendment...

Proponents of Florida Amendment 2 say research proves marijuana helps patients who suffer from a wide range of medical diseases and conditions. "Cocaine, morphine and methamphetamine may all be legally administered to patients — so why not marijuana," United for Care, the group backing the amendment, says on its website.

This is not the first time Florida residents have voted on medical marijuana legalization. In 2014, a similar amendment narrowly failed to reach 60% of the vote needed to pass. This year, the amendment more clearly defines what medical conditions will be covered and requires parental consent for use of marijuana by minors. 

...and the case against 

Some Florida doctors have said they do not see a medical value to cannabis. The Florida Medical Association opposes the amendment. Others worry medical marijuana is a pathway to legalization.

"As a physician, I don't want medical marijuana to be the lead-in to a legalization of marijuana," a Florida doctor told local television station WBBH.

These Athletes Add Cannabis To Their Workout Regimen

Debra Borchardt,

There is a growing community of athletes that believe cannabis can improve athletic performance.

Contrary to the image of a couch potato stoner reaching for a bag of chips to answer to the call of munchies, these athletes incorporate cannabis into their fitness regimen. Some do it to enhance their game, while others use it for focus. There are no studies to support this use, but these athletes are embarking on their own journey to unlock the mystery.


“I’m a twice cancer survivor,” said Gaynell Rogers, managing director of Bloom Cannabis Group.

“Colon and breast. I use a cannabis tincture before I swim laps. It helps me focus and work out harder.” Rogers said that with 2,100 strains available in California, it took some time to figure out which was best for her needs. She is quick to point out that she doesn’t use a psychoactive cannabis and that each person is different. “At Harborside Health Centers, we have formulation specialists,” she said, “There isn’t one strain that works for everyone.”

Jim McAlpine is one of the earliest supporters that made the connection between cannabis and fitness. He became a convert after using marijuana as a way to lose weight, a big contrast to the image of a stoner gorging on snack foods to satisfy the munchies. McAlpine established the 420 Games, a competition among athletes that use cannabis. “I wanted to destigmatize the people that used marijuana. I wanted to teach people the healthy and optimal way to take in cannabis,” he said.

He advises taking in cannabis by either a vaporizer or an edible as opposed to smoking flower.

McAlpine has joined with former NFL football player Ricky Williams in creating a gym called Power Plant Fitness. “We’ll do a cannabis performance assessment for our clients by starting with a baseline workout. In a calculated way, we’ll determine the best protocol,” said McAlpine. The smoking area will be separate.

According to McAlpine, there are two specific ways to incorporate cannabis into a fitness regimen.

Either post-workout for pain and muscle recovery or he said many use cannabis for focus. “Whether it’s the gym, skiing, jogging or swimming, it allows my mind to laser focus,” he said.

McAlpine isn’t selling marijuana and pointed out that everything he does is legal. He said, “I follow the law and I’m not scared of prosecution,” McAlpine hopes to become the leading authority on fitness and cannabis.

Seibo Shen co-founder and chief executive officer of VapeXhale agreed with Rogers. “There is no one magic bullet.” Shen got involved with the Cannathlete program after noticing that several professional athletes were buying his premium vaporizer product. “I called them and thanked them for being a customer and started asking questions,” he said. He had been a supporter of cannabis, but never felt that it improved his athletic ability. “I felt I did better when I was sober,” Shen said.

Then, he met Jake Shields and Denny Prokopos and the more he learned he became convinced that incorporating cannabis into his workout program was helping him. Like Rogers and McAlpine, he realized that finding the right product was the key. Shen also thought that this may be holding back other cannabis users from fitting this into their regimen.

The Cannathlete program with Shield and Prokopos has begun developing a program to help athletes figure out the best formula for them. They held their first event in San Francisco in July.

As more states legalize marijuana and cannabis use becomes more accepted, don’t be surprised if your trainer begins suggesting cannabis as part of your workout routine.

Federal Court Nullifies Federal Marijuana Laws Because States Did It First


Mike Maharrey


The impact of state laws legalizing marijuana despite federal prohibition continues to grow and reverberate through the American political system from the bottom up.

In 1996, California became the first state to legalize medical marijuana. The federal government fought state legalization tooth and nail, spending billions on enforcement efforts and even winning a Supreme Court Case. Despite every federal effort to stop it, state legalization continued to expand.

Today, more than two-dozen states allow for the medicinal use of cannabis, and four states have legalized it for general recreational use as well.

As more and more states have legalized marijuana, federal prohibition has crumbled. State action has nullified the federal ban in effect in more than half the country. Now the impact of state policy has rippled up to the federal level.

In 2014, Congress placed a provision in the Consolidated Appropriations Act providing that “[n]one of the funds made available … to the Department of Justice may be used … to prevent [various] States from implementing their own State laws that authorize the use, distribution, possession, or cultivation of medical marijuana.”

This month, the Ninth Circuit Court of Appeals held that federal judges should uphold this provision in the appropriations act by halting prosecutions of people using marijuana legally based on their state’s laws.
“In sum, § 542 prohibits DOJ from spending money on actions that prevent the Medical Marijuana States’ giving practical effect to their state laws that authorize the use, distribution, possession, or cultivation of medical marijuana….
“[By prosecuting state-authorized medical marijuana users,] DOJ, without taking any legal action against the Medical Marijuana States, prevents them from implementing their laws that authorize the use, distribution, possession, or cultivation of medical marijuana by prosecuting individuals for use, distribution, possession, or cultivation of medical marijuana that is authorized by such laws.
By officially permitting certain conduct, state law provides for nonprosecution of individuals who engage in such conduct. If the federal government prosecutes such individuals, it has prevented the state from giving practical effect to its law providing for non-prosecution of individuals who engage in the permitted conduct.
“We therefore conclude that, at a minimum, § 542 prohibits DOJ from spending funds from relevant appropriations acts for the prosecution of individuals who engaged in conduct permitted by the State Medical Marijuana Laws and who fully complied with such laws…”
In simple terms, Congress has effectively prohibited federal prosecution of marijuana users whose actions comply with all relevant state medical marijuana laws – despite federal prohibition of marijuana. Of course, Congress could at any time reinstate funding, at which time prosecution could resume.
“Congress currently restricts the government from spending certain funds to prosecute certain individuals. But Congress could restore funding tomorrow, a year from now, or four years from now, and the government could then prosecute individuals who committed offenses while the government lacked funding. Moreover, a new president will be elected soon, and a new administration could shift enforcement priorities to place greater emphasis on prosecuting marijuana offenses.”
But for the present time, medical marijuana users complying with state laws don’t have to worry about state or federal prosecution. Congress has tied the hands of federal prosecutors.
The court’s opinion highlights and important reality underlying state medical marijuana laws. They don’t “repeal” federal prohibition. As the judges make clear, the activities of medical marijuana users remain a federal crime.
“To be clear, § 542 does not provide immunity from prosecution for federal marijuana offenses. The CSA prohibits the manufacture, distribution, and possession of marijuana. Anyone in any state who possesses, distributes, or manufactures marijuana for medical or recreational purposes (or attempts or conspires to do so) is committing a federal crime. The federal government can prosecute such offenses for up to five years after they occur.”
In fact, the last paragraph of the ruling throws down the federal supremacy trump card, claiming states can’t legalize something the illegal under federal law.
“Nor does any state law ‘legalize’ possession, distribution, or manufacture of marijuana. Under the Supremacy Clause of the Constitution, state laws cannot permit what federal law prohibits. Thus, while the CSA remains in effect, states cannot actually authorize the manufacture, distribution, or possession of marijuana. Such activity remains prohibited by federal law.]” [Emphasis added]
So, according to the politically connected lawyers on the Ninth Circuit, states cannot “actually authorize” medical marijuana.

But they have.
And Congress has tied federal prosecutors’ hands so they can’t even enforce federal law – despite the fact it remain in effect.

So, the bottom line is medical marijuana states have nullified federal marijuana prohibition in effect. All of the court’s “you can’t do that” rhetoric means nothing when the reality proves otherwise.

This reveals another important strategic truth. State and local actions bubble up through the political system. Congress would have never acted if states hadn’t taken action first. It was California’s willingness to simply ignore the federal law and go its own way that set this all in motion.

It was other states following California’s lead until more than have of them had legalized medicinal cannabis that made this Congressional action happen.

The lesson: you are far more likely to change D.C. by changing Sacramento, or Baton Rouge or Albany than you are by direct action inside the Beltway.

Sex Party leads push to legalise marijuana

Benjamin Preiss

Victorians would be free to smoke and grow marijuana if a push by the Sex Party to legalise the drug is successful.

On Wednesday, Sex Party MP Fiona Patten will introduce a motion to the upper house calling on the government to immediately remove criminal sanctions for the possession, use and cultivation of marijuana for personal use by people 18 and older.


The motion will also urge the government to allow the drug to be grown by farmers, which would create an additional revenue source through taxation.


She will move the motion in a bid to force the major parties to debate the legalisation of cannabis. The matter is set for debate on September 14.

"The time has come," Ms Patten said. "Most people understand that the overseas experience of legalising cannabis for recreational use has had only upsides."

Ms Patten said other jurisdictions that had legalised cannabis had achieved "massive savings" in law enforcement, which had flowed through to unclogging court systems.

She said regulations should also be drafted to allow for the licensing and taxation of farmers, wholesalers and retailers of recreational cannabis.

Ms Patten also wants prohibitions on cannabis paraphernalia, including bongs, to be scrapped "because there is simply no evidence such restrictions work".

She also plans to introduce a private member's bill for the legalisation of recreational cannabis next year.

Although Ms Patten's push to legalise marijuana may be seen as unlikely to succeed, she has achieved wins in other ambitious policy areas.

She has already successfully campaigned to introduce buffer zones around abortion clinics and lobbied to legalise ride-sharing service Uber. She also proposed a parliamentary inquiry into drug laws.

The inquiry will examine the effectiveness of roadside drug testing, harm reduction strategies and whether pill-testing facilities should be introduced at music festivals.

A cross-party committee will produce a report on the inquiry by March 2017.

Victoria will be the first state to legalise medical cannabis in Australia. Children with epilepsy will first get access to medical cannabis next year.

The government has established a horticultural trial for medical cannabis.

Calls made for Gov’t to commit to decriminalizing marijuana use



By: Staff Reporter, SKNVibes.com
 
BASSETERRE, St. Kitts – WITH Prime Minister Dr. the Hon. Timothy Harris standing firm on the laws of the Federation that prohibit the use of marijuana, the Rastafarian community is not buying into it.

On Saturday last (Aug. 27), those calling for its decriminalization took to the street to protest the announcement made by the Prime Minister at one of his recent town hall meetings.

Pointing to an article published in one of the local newspapers, Ras Iroy, Chairman of the Organization of the Rastafarians in Unity, strongly criticized both Dr. Harris and his comments.

In a media interview, Iroy disclosed that Saturday’s marched marked a major occasion for his Organization because they have been fighting for a number of causes affecting the Rastafarian community in St. Kitts and Nevis.

“This year we are paying special attention to the herbs, the holy herbs – the Cannabis,” he said. “They are coming around with all forms of talks and different kind of ideologies and we are saying that it is about time they come to the real essence of the matter.”

The Chairman took a swipe at the police indicating that they have been arresting a number of individuals for small amounts of Marijuana, a product he claimed does not have any harmful effect on the body.

Additionally, he pointed out that a number of persons have used it to assist with their health.

Since several states within the United States of America legalized it on a local government level, a number of countries with the Caribbean and around the world have either decriminalized and/or considered making its use legal – but only in small proportions.

Dr. Harris, at the Government’s town hall meeting, pointed out that persons from a number of countries in the region have found it difficult to source financing for such products. Additionally, he indicated that governments are also experiencing such difficulty since decriminalizing the use of marijuana.

Further, St. Kitts and Nevis is not a community by itself and if such decriminalization is made, Dr. Harris said, possible actions could be taken.

Many have - in recent times - expressed concerns over the possible fallout from the decriminalization of such; with some youth gravitating to this as the most viable prospect for gainful employment.

However, the Prime Minister charged that a national conversation is needed before any firm decision is taken on that matter.

New York State Is Making it Easier to Get Medical Marijuana

Tuesday 30 August 2016

Nurses won't give cannabis oil to son who suffers seizures, Toronto mom says

Health Canada allows nurses to administer medical marijuana, but health facilities may have other policies

By Muriel Draaisma, CBC News

A Toronto mother whose son suffers from chronic seizures due to a rare genetic condition is frustrated that some nurses in Toronto hospitals have refused to administer cannabis oil, which she says brings him relief.

Maria Niembro, mother of 11-year-old Francesco, told CBC's Metro Morning on Monday that she has to administer the cannabis oil herself to her son, who suffers from CFC, or Cardio-facio-cutaneous, syndrome.

Francesco was having two to 10 seizures a day before he started receiving the cannabis oil. Niembro said it has significantly reduced the number of seizures he suffers daily.

"They apologize and they say they cannot administer it because there is no policy established," she said.

Niembro said she heard through word of mouth about the effectiveness of cannabis oil in treating seizures. Medical marijuana is legal in Canada and Niembro obtains the cannibis oil through a prescription.

Francesco receives the medication through a G-tube with the help of a syringe. But having to administer it herself means it is difficult for Niembro to have a break from his daily care.

"We were looking for a better option. His seizures were getting worse," she said.

Dr. Michael Verbora, a doctor at the Cannabinoid Medical Clinic in Toronto, who is one of Francesco's physicians, said he has noted a "major reduction" in the boy's seizures. He said there is no THC (tetrahydrocannabinol) in this type of medicine, the psycho-active ingredient that leads to a marijuana high.

Some nursing staff in hospitals and hospices, however, will refuse to administer the cannabis oil, he says.

'The risks are very minimal,' doctor says

"This is something new that many of my patients who are using CBD oil are starting to experience. It's been coming to light recently. It's very frustrating for a number of my patients who are trying to administer what is a medication that has been effective but unfortunately they are facing what appears to be political barriers," Verbora said.

"From my perspective, I appreciate that it is a newer medication. It's definitely something that is being studied more and more. On the other hand, it's a little frustrating for a physician like myself who has been using this medicine for over a year."

Verbora said the concern stems in part from the age of the patient in this case and from the stigma surrounding medical marijuana in general.

"The risks are very minimal but the benefits are substantially higher," he said.

Toronto's Hospital for Sick Children, where Francesco has been a patient, said in a statement that it cannot comment on a specific case but cannabis oil is not a medication that it prescribes or administers.

"SickKids does not currently prescribe or administer cannabinoid oil as part of clinical care, as there are not enough high-quality studies about the safety and efficacy of its use in treating seizures in children," it said.

"We understand that there is a need for this type of research and we have recently received Health Canada approval for a clinical trial to determine the safety and dosage of cannabinoid oil for the treatment of patients with drug-resistant epilepsy.

"In the meantime, although SickKids staff do not currently prescribe or administer cannabinoid oil for seizures, parents are supported if they wish to administer it to their children while in hospital."

Organizational policies matter, college says

According to the College of Nurses of Ontario, federal regulations allow for nurses to administer medical marijuana. It said the issue is governed by the Access to Cannabis for Medicinal Purposes Regulations under the Controlled Drugs and Substances Act.

However, it said individual facilities may have other policies.

In a statement, the college said there are many factors involved, saying "nurses must consider whether they have the competence and the authority required to assist a client with taking medical marijuana. For example, in some practice settings, an order may be required. Therefore, it is important for nurses to know their organizational policy and if no policies exist, to advocate with their employer for the development of policies."

A Supreme Court of Canada ruling in June 2015 paved the way for marijuana patients to consume marijuana orally rather than just smoke it, and the following month, Health Canada gave producers the green light to start making plant-based extracts such as cannabis oil.

California Veterans Group Distributes Free Cannabis

Stephen Calabria


A local veterans organization in Santa Cruz, California, has begun providing free medical cannabis to area veterans.

Local nonprofit Santa Cruz Veterans Alliance now distributes free medical cannabis to veterans in the belief that the substance can be used to treat such medical conditions effectively as PTSD and addiction to prescription painkillers.

According to Jason Sweatt, one of the co-founders of the group, veterans have been hit especially hard by the country’s prescription painkiller epidemic and are in need of other options.

“What veterans need, what everyone needs, is alternatives to prescription medications. Not just narcotics, but also the wide range of antidepressants and their adverse side effects,” he said.

Addictions to prescription painkillers have grown astronomically in America in recent years.

According to a recent report by the Centers for Disease Control, Americans’ abuse of prescription painkillers has reached the levels of an epidemic.

“The number of overdose deaths [from prescription painkillers] is now greater than those of deaths from heroin and cocaine combined,” the CDC wrote. “A big part of the problem is the nonmedical use of prescription painkillers — using drugs without a prescription… In 2010, about 12 million Americans (age 12 or older) reported nonmedical use of prescription painkillers in the past year.”

Medical cannabis is increasingly seen — especially amongst veterans groups — as an effective treatment for both chronic pain and addiction to prescription painkillers. The House of Representatives recently passed a measure allowing VA doctors to recommend medical cannabis in the states in which it is legal.

State governments have also been getting aboard the medical-cannabis bandwagon. Veterans groups have advocated across the country to make medical cannabis more available to vets statewide.
For some Santa Cruz veterans, the choice between prescription painkillers and medical cannabis is a no-brainer.

“I’ve had nine surgeries in the last six years,” says Army veteran Timote Peterson, 64. “Medical marijuana is far preferable to where I was a few years ago. These guys have helped me out.

“Medical marijuana is not perfect,” he continued. “It isn’t that effective for really acute pain, but it is a damn sight better than most the other stuff they prescribe to you.”

There have yet to be any controlled substances to test the safety and effectiveness in using medical cannabis to treat such medical conditions as PTSD. However, the U.S. Drug Enforcement Agency has evidently warmed to the idea of using cannabis in PTSD’s treatment: the agency recently approved the first clinical study for the substance’s use in treatment for the condition.

Cannabis Network For Seniors Coming Soon

by Erik Sass,

We are indeed living in a brave new world. In the latest awesomeness, seniors who happen to enjoy cannabis, or use it for medical reasons, will soon be able to find each other online thanks to a planned new marijuana social network intended just for older adults.

Based in Detroit, the Seniors 420 Network will go live with a Web site and newsletter sometime later this year if they can get their act together, according to the Detroit Metro Times.

The group’s founder, Catherine Masters, tells the Detroit Metro Times that the social network will allow members to find like-minded friends and roommates, collaborate on business opportunities, buy and sell goods and services, and share marijuana-related tips, as well as organizing to change drug laws.

Masters added: “We’re a very vibrant group of people who truly understand the value marijuana gives us. Most seniors are on way too many meds and marijuana gives us an alternative to them.”

The Michigan electorate voted to legalize marijuana for medical use in a referendum held in 2008, but earlier this year the state court of appeals issued a decision saying dispensaries aren’t protected by the law, leaving the situation rather confused. Subsequently, many medical marijuana users have turned to home cultivation, although “caregivers” can distribute to up to five people -- both areas where a social network could come in handy.

While it may be the first one designed for older users, Seniors 420 Network has plenty of company in the marijuana social space. Another network, MassRoots, connects users and allows them to share content including reviews, technical advice, and directories listing legal cannabis dispensaries. 

There’s no transactional element, but users who meet online through the network may choose to buy and sell the drug elsewhere.

There’s also a marijuana-focused online ad network, launched earlier this year by AdCellerant and Voice Media Group, a Denver-based media company that publishes LA Weekly, the Phoenix New Times, the Dallas Observer, and Miami New Times, among other community newspapers. 

The network is focused on programmatic display advertising and extends to publications outside Voice Media’s own portfolio.

Israel Will Soon Begin Exporting Medical Marijuana

By Julia Granowicz
 
israel-will-begin-exporting-medical-marijuana
Getty
There are people all over the world looking to advance in the cannabis industry – but Israel is getting ahead in many aspects. They have already started to come out with some of the most innovative cannabis technology over the last couple of years – investors from the U.S. have already sunk $50 million into technology like inhalers and research as well, seeing as it is much easier to accomplish in Israel. 

It’s only been a couple of months since Israel approved a plan that eases restrictions on medical marijuana research and cultivation – and weeks since they approved a measure that will make it easier for patients to access medical marijuana. The new regulations will allow farmers to grow medical cannabis, license more physicians to recommend it and allow it to be sold in pharmacies

With 23,000 patients currently registered to use medical marijuana, this is definitely a much needed advancement. 

“In two years we will have protocols in place that will allow farmers to grow cannabis,” Ariel told Israel Radio over the weekend, according to Israel’s online Hebrew-language magazine Cannabis.

Initially, the approved measures that ease restrictions on growing cannabis will not allow for the export of the crop. However, over the next two years, Agriculture Minister Uri Ariel believes that the regulatory framework could be in place. Currently the focus is for them to research the best methods for growing the plants – considering the country is well known for their agricultural research they will likely be growing some of the most potent and therapeutic plants to be found. 

On the other hand, cannabis growers in Israel have already made it a point that in order for them to sell their product locally at a reasonable price, they would have to export crops as well. 

If all goes well, within the next couple of years growers will have determined a “best practices” of sorts for cultivation and will move on from there to export their crops. 

Israel is doing a great job of getting ahead of the game when it comes to cannabis – leading in technology and now possibly being one of the first to export medical marijuana – we can expect big things from Israel in the next few years if they keep this up.

Why Does Cannabis Help Anxiety if it Increases Paranoia?

By Julia Granowicz
 
how-does-cannabis-help-anxiety-if-it-increases-pananoia
Flickr @ Alex B
In the United States alone, 40 million people every year suffer from some sort of anxiety-related disorder – whether it be Generalized Anxiety Disorder, Social Anxiety Disorder, Panic Disorder or Post-Traumatic Stress Disorder – and all of them have the potential to be a debilitating illness. 

As it stands, there are more people suffering from anxiety related mental illnesses than there are people suffering from arthritis, which is the most common cause of chronic pain. Unfortunately, anxiety is one of those conditions that can be hard to get under control.

The pharmaceutical industry profits every year by prescribing anti-depressant and anti-anxiety drugs – but each year more and more people are turning to safer and more effective alternatives, especially medical marijuana. It may seem ironic – using a plant that is said to induce paranoia to reduce the feelings of paranoia – but it really does work for a large number of patients. This comes down to the fact that patients aren’t using cannabis to get stoned, they are using it to feel normal again – something some medications simply can’t do for many people. 

For many, the motivation to give medical marijuana a try stems from the fact that they simply cannot stand to be on the medications they have already been prescribed. Many physicians will prescribe anti-depressant drugs as a treatment for anxiety disorders – even if depression isn’t necessarily the cause of the anxiety. 

These medications may work for some, but in many the side effects are worse than the original symptoms of anxiety; some common side effects including fatigue, dizziness, lightheadedness and some as scary as numbness and tingling in the extremities, hallucinations and even thoughts of suicide (this last one is most common in teens).

The fact that it is impossible to overdose on cannabis and the side effects are so few (dry mouth and dry eyes being the most common and paranoia, fatigue, increased appetite and more will vary by strain) that it has become an attractive option for patients who are tired of feeling worse on their medication than they do off of it. 

The biggest issue becomes: what kind of medical marijuana should be used when treating anxiety disorders? There are definitely some that are more likely to produce a paranoid feeling after consumption and clearly those are strains that someone with anxiety will want to avoid. So why, if cannabis can make some people paranoid, can it also be an excellent treatment option for a condition like anxiety?

Turning to Medical Marijuana for Anxiety Disorders
When choosing medical marijuana as a treatment option for anxiety disorders, you should take into consideration the fact that what works best for one person, may not be exactly what you need. 

Someone who has been using cannabis to manage their anxiety for years may have built up a tolerance and may benefit from slightly higher THC strains – however, new patients, especially those who are not accustomed to cannabis, should start off with lower THC strains until they know how their body and mind will react to the medicine. 

Smoking and vaporizing is an excellent remedy when you need something fast-acting. If you find that you only need medication when things are becoming too much or you can feel a panic attack coming on, then you may want to stick to these forms of consumption. 

With smoking and vaping you will find the effects are almost immediate – so there will not be a long wait for your overwhelming feelings to subside; however, if you were to choose edibles instead than you may find that the effects take a couple of hours for onset (making them best for using prior to putting yourself in a stressful situation that could trigger your anxiety).

You should also take into consideration the fact that there are other forms of medical cannabis rather than just raw cannabis flowers – you can choose to medicate with oils as well as choosing to use the isolated compound cannabidiol (CBD), which is proven to be effective for both anxiety disorders and depression. There are many people who find that CBD alone is enough to treat their anxiety and help them to once again lead a productive life. 

A study back in 2011 was conducted on a small group (only 10 people) who were diagnosed with Social Anxiety Disorder (SAD). In the first half of the study, one group of 5 received 400 mg of CBD, while the other group received a placebo. During the second half of the study they reversed and the 5 who previously received CBD now got the placebo and vice versa – and the results of that study were extremely promising. It showed that there was a significant decrease in subjective anxiety – determined by the cerebral blood flow after being administered the CBD. 

The fact that CBD has many of the same healing properties as THC without the high is the main reason it has become a highly regarded cannabinoid in the world of medical marijuana. In fact, even some states who refuse to legalize medical marijuana have created laws that allow the use of CBD-only products for seizure conditions; with more studies, depression and anxiety might not be far behind.

Choosing Your Strains Wisely
While CBD may be helpful on it’s own for a number of people, the most convenient (and least expensive) form of medicating with cannabis is generally to utilize cannabis flowers in the form of smoking or vaping, but that doesn’t mean that you can’t still get all the benefits of a CBD-based medication – you just have to be careful when you pick the strains you choose to medicate with. Strains that are higher in CBD and lower in THC are optimal for people suffering from anxiety disorders. 

If a strain that is higher in CBD than THC is not readily available to you, then you will want to do your best to stick to indica and indica dominant hybrids as they generally have a higher CBD content than sativa strains do. It is actually the sativa strains that are most likely to induce paranoia – though this seems to be a reaction more in occasional and new users, rather than people who use cannabis frequently. 

Reducing the possibility of these feelings can be done in most cases by choosing an indica strain instead, which is know for relaxing sedation, rather than being euphoric and energizing. 

Cannabis may be a complicated plant, but the growing understanding of our endocannabinoid system helps us to understand how to better utilize medical marijuana for mental health conditions like anxiety and depression. 

While CBD may be a perfectly effective treatment, it often works best in conjunction with small amounts of THC (as it occurs naturally in high CBD strains like Charlotte’s Web and Harlequin). As it turns out, people suffering from anxiety, depression and other mental illnesses may actually be lacking in naturally occurring endocannabinoids, which seems to be balanced out with the introduction of moderate doses of cannabis. 

The biggest problem, aside from deciding which strains work best, is always going to be dosage. It is difficult to determine exactly what a proper dose of cannabis is – especially since everyone will react slightly differently. 

Some people may be more likely to be predisposed to paranoia as a cannabis side effect, while others may never experience this feeling; and it only takes a couple extra puffs or a slightly too-strong edible to send your experience down the drain. Moderation is key when it comes to cannabis treatments – in many cases, less really is more. 

In the end, the bottom line is, too much cannabis, especially strains that are particularly high in THC, are more likely to cause you a bout of paranoia. New and infrequent users are also more likely to see this effect when compared to people who use cannabis more regularly. 

If you are intending to use cannabis as an alternative treatment for anxiety disorders then you should know going in that the best strains are those high in CBD and low in THC (the kind that generally won’t get you high) and that CBD on it’s own (if made from medical cannabis, not the hemp version) can also be an effective and non-psychoactive treatment option to consider. 

It takes experimentation for everyone to find exactly what works right for them – while one person may find that 2-3 puffs of Blue Dream is exactly what they need to get through the day, others may find that to be too much and prefer a CBD only medication (or at least one with only trace amounts of THC). 

Until the day comes when we are able to do massive scale trials with medical marijuana, experimentation will be the only way for patients to determine exactly what works for them – but then again, even with pharmaceuticals there is trial and error involved just to get the right prescription and dosage; at least with medical marijuana switching dosages and strains cannot cause you the type of health problems prescription drugs changes could.

Legalizing marijuana reduces absenteeism at work

by Beatrice Credi 
 
Marijuana use has been traditionally associated with lower productivity at work and a higher incidence of both work-related accidents and absenteeism.

Now these myths have been debunked, in a recently published study in the journal Health Economics.

The study data indicates that if not abused, cannabis has little affect on work performance. But that’s not the whole picture.

The study also evaluated the number of sick days used by employees since marijuana became legal in the U.S. The number of requested sick days diminished.

Of course, it is difficult to understand if this is due to therapeutic use of marijuana, but the data reflected middle-aged males, which happens to be the category where there is a higher probability of therapeutic cannabis assumption.

Patent No. 6,630,507: Why the U.S. government holds a patent on cannabis plant compounds

It’s about technology transfer, not legalization

By Alicia Wallace

It may not have quite the same ring to it as a certain seven-digit phone number made famous by a 1980s pop hit, but 6,630,507 has become internet-famous since the U.S. Drug Enforcement Administration opted not to reschedule marijuana, leaving it in the category of drugs with no legitimate medical uses.

Since then, proponents of legalization have responded with a storm of social-media posts highlighting U.S. Patent No. 6,630,507, granted in 2003 to the U.S. Department of Health and Human Services and covering the potential use of non-psychoactive cannabinoids to protect the brain from damage or degeneration caused by certain diseases, such as cirrhosis. They’re telling the DEA to “talk to the hand,” writing “6,630,507” on their palms, hashtagging the number and linking to past articles on the topic.

The intent of the posts is symbolic, said Sam Mendez, an intellectual property and public policy lawyer who serves as the executive director of the University of Washington’s Cannabis Law & Policy Project.

“Naturally, it shows that there is a certain amount of hypocrisy that there is ‘no accepted medical use’ for cannabis according to federal law,” Mendez said. “And yet here you have the very same government owning a patent for, ostensibly, a medical use for marijuana.”
Willie Nelson holds up a container of his branded marijuana with "6630507" written on it.
Provided by Willie's Reserve
Willie Nelson holds up a container of his branded marijuana with “6630507” written on it. Following the U.S. Drug Enforcement Administration’s inaction on rescheduling marijuana, legalization proponents have responded by taking to the internet to highlight Patent No. 6,630,507, which covers the potential use of non-psychoactive cannabinoids.
Mendez — like patent lawyers, the research arm of the HHS and the New York biopharmaceutical firm that’s working as an exclusive licensee under the patent — cautions that the existence of Patent No. 6,630,507 doesn’t signal that legalization is on the horizon.

“The government is allowed to file and obtain patents, and that has no bearing on the Controlled Substances Act,” Mendez said.

But it does indicate what could result if cannabis were rescheduled: an explosion of marijuana-related patents, Mendez said.

No. 6,630,507’s inception

The National Institutes of Health employs roughly 6,000 Ph.D.-level scientists, said NIH special adviser for technology transfer Mark Rohrbaugh, who holds doctorates in biochemistry and law. When one of those scientists invents a new technology or makes a new discovery, the NIH evaluates the result and determines whether to file for a patent.

Over the years, the NIH has conducted and funded research involving cannabis — both as a drug of abuse and for its potential therapeutic properties, NIH spokeswoman Renate Myles said.

In the case of No. 6,630,507, the researchers discovered that non-psychoactive compounds in cannabis may have antioxidant properties that could be beneficial in the treatment of certain neurological diseases, she said.

“This patent describes the therapeutic potential for cannabinoid chemical compounds that are structurally similar to THC, but without its psychoactive properties, thereby treating specific conditions without the adverse side effects associated with smoked marijuana,” Myles said in an e-mail.

The patent doesn’t prove the chemical compound is effective in the stated treatment, Rohrbaugh said.

The compound would have to be purified, synthesized in a lab setting, subjected to extensive testing in animals and humans, and ultimately require U.S. Food and Drug Administration approval to show that it’s safe and effective for the intended purpose.

The intent behind patenting and licensing NIH discoveries is to keep technology that could potentially benefit the public from sitting idle, he said.

This sometimes requires looping in the private sector, he said. Laws made in the 1980s help entities such as universities and the government to make their discoveries accessible to others who are in a position to further the research and potentially commercialize the developments. The entities behind the discoveries typically receive payments as part of the licensing agreement.

NIH’s Technology Transfer Office advertises patents — including those related to cannabinoids — available for licensing on its website, and officials sometimes conduct outreach as well. The licenses often are packaged with some elements of exclusivity, Rohrbaugh said.

“It’s like a piece of land,” he said. “You wouldn’t build a million-dollar house on a piece of land you wouldn’t have some title to.”

Five years ago, the NIH granted New York-based Kannalife Sciences Inc. an exclusive license for the part of the technology outlined in the patent to develop cannabinoid- and cannabidiol-based drugs for the treatment of hepatic encephalopathy — brain damage that could result from conditions such as cirrhosis. Kannalife also has a non-exclusive license to develop drugs to treat chronic traumatic encephalopathy, a rare and progressive degenerative brain condition likely caused by repeated head trauma, Myles said.

“Other companies may also apply for licenses to use this patented technology to develop drugs to treat other neurological diseases where antioxidant properties of cannabinoid drugs may be beneficial,” she said. “The patent expires on April 21, 2019, after which anyone would be free to develop drugs based on these cannabinoids that, like all drugs, would require FDA approval to demonstrate safety and effectiveness in humans.”

No other companies have licensed portions of the 6,630,507 patent, she said.

Kannalife CEO Dean Petkanas did not disclose the specific terms of the licensing agreement, but he told The Cannabist that the deal includes milestone payments, a percentage of sales as well as royalties in “the six figures” to the government. The patent is valid in several jurisdictions, including the United Kingdom and Australia, he said.

Petkanas said his company “could not have gotten a better ruling” from the DEA.

“We’ve been building our business from the pharmaceutical side from Day One,” said Petkanas, a former executive at the investment firm depicted in the film “The Wolf of Wall Street.” “We want to be on the pharmaceutical side; everything we do has to be by the book.”

Kannalife, recently featured in a football-related Sports Illustrated report regarding its research into therapies for chronic traumatic encephalopathy, is about to begin raising $15 million in private investments. The money would allow it to start clinical trials related to hepatic encephalopathy as soon as the first quarter of 2018. Petkanas said Kannalife anticipates eventually seeking orphan drug status — a special FDA designation for treating rare conditions. The company also contemplating conducting chronic traumatic encephalopathy-related trials in Europe.

“Does marijuana have medicinal benefit? Well, yeah,” Petkanas said. “But it can’t be targeted and qualified for repetitive use (without the FDA-approved research).”

That one arm of the federal government is poised to make money from cannabis-derived compounds, and another has approved synthetic cannabinoid drugs such as Marinol and Syndros, tells a story different from the one told by the DEA, which lumped together the hundreds of chemical compounds of cannabis as a Schedule I substance, said Gregory F. Wesner, a Seattle-based patent and trademark attorney for Lane Powell PC.

“The interesting thing here is basically the government being two-faced,” Wesner said.

If and when national legalization comes, it’ll trigger a swarm of new patent applications, said the UW Cannabis Law Project’s Mendez.

“That’s massive growth that does not occur every day or every year That’s the kind of growth you’re talking about once in a generation,” he said of the potential sales growth in the industry. “As part of that, you’re going to see many people and many businesses research this far more intensely and file for patents.”

An analysis conducted by Christopher Freerks, a Lane Powell patent administrator, shows that the PTO already has granted at least four dozen cannabis-related utility patents, including No. 6,630,507. The analysis does not include plant patents, which have been tougher to come by for some cultivators.

San Diego patent attorney Dale C. Hunt, an Open Cannabis Project board member who has degrees in botany, genetics and biology, said one would need to develop a completely new strain in order to land a patent.

If marijuana is rescheduled, it’s realistic to believe that the innovation could carry on in the laboratories of NIH scientists, he said. But for now, the federal government’s technology transfer and patenting actions around cannabis do not appear to be widespread.

“(Tech transfer) happens all the time,” Hunt said. “It obviously doesn’t happen all the time in cannabis.”

Illegal Patient Profiles: Getting Clean with Cannabis