An Anti-Climactic End to the First Cannabis Patent Litigation?

Our last update on the first-ever cannabis patent case, United Cannabis Corporation (“UCANN”) v. Pure Hemp Collective, Inc. (“Pure Hemp”) was back in July 2019. A lot has changed in the world since then (although the case was largely unremarkable), and the possible ending to this once-deemed “pivotal” case for the industry may now face a pretty anti-climatic ending, at least for now: bankruptcy.

UCANN has filed a “Suggestion of Bankruptcy,” indicating that it filed for relief under Chapter 11. The fact that it has filed for bankruptcy automatically acts as a stay – basically, a pause button, in any other judicial proceeding.

Section 362 of the Bankruptcy Code provides:

“… a petition filed … operates as a stay, applicable to all entities, of—

(1) the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been  commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title …”

Interestingly, UCANN noted in its filing that it fully intended to continue prosecuting

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