Growth of Clinical Trials, Lawsuits Spotlight Cannabis IP Divide

Sterne Kessler Director Deborah Sterling, Ph.D. spoke with Bloomberg Law about the pharmaceutical industry’s growing interest in cannabis and the related intellectual property considerations.

Sterling noted the rise in clinical studies targeting conditions ranging from obesity to opioid use disorder is a sign of the pharmaceutical industry’s interest in cannabis leading companies to seek extensive patent protection.

She also commented on the hesitancy for patent protection within the cannabis industry because of its historical role in indigenous communities and religion. “For certain companies, the investment in IP and the potential for blocking others from using a product doesn’t sit as well with them. Their goal is to share and be part of a community or a culture.”

Sterling stated that pharmaceutical companies often invest millions into clinical trials, making IP protection imperative for securing a market to recover costs. As outlined in a Sterne Kessler webinar, cannabis-related patent applications peaked in 2020 at around 500 and have slowly declined. “One thing that may or may not be impacting IP around that time was of course COVID,” she continued, “So until we see more published applications in the more recent years, we’ll have a better understanding of what’s happened recently.”

With recent changes at the U.S. Patent and Trademark Office making it harder to challenge a patent’s validity, Sterling noted the increase in IP litigation. “If there is an industry that supports that assertion, of course it’s going to happen.”