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Updates on Detroit’s Cannabis Industry: How to Obtain a License, and What New State and Federal Rules May Mean for D-Town’s Dispensaries

Two years ago, in a post titled “The Detroit Cannabis Industry – A Pathway to Social Equity?”, this blog examined the historical context and legislative hurdles which had, up to that point, prevented the opening of recreational cannabis dispensaries in Detroit. Two years later, we examine how the industry has since bloomed in the Motor City, the practical steps to obtaining a recreational cannabis license in Detroit as well as lingering obstacles for newcomers, and the potential implications of both the Cannabis Regulatory Agency’s proposed new administrative rules and the Drug Enforcement Agency’s (the “ DEA’s [TD1]   ”) proposed rescheduling of cannabis to a Schedule III controlled substance.   A Budding Business In August 2022, the City of Detroit announced its plan to award recreational marijuana licenses in three phases, reserving half of the available licenses in each phase for social equity applicants. A “social equity applicant” is defined under the law as a “quali...
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Is Your Desired Mark Functional?

  Are you considering seeking trademark registration for the shape, color, design, configuration, or even the overall appearance of your product? Or do you want to assess potential challenges of your unregistered trademark? If so, you may want to consider if your desired mark is serving a functional purpose prior to applying for trademark registration.   Under the Lanham Act, the federal law that governs trademarks, if a product feature is functional, it is ineligible for trademark protection. [1]     Types of Functionality               There are two types of functionality that courts may consider when denying protection on functionality grounds – utilitarian functionality and aesthetic functionality. Utilitarian functionality, sometimes called mechanical functionality, refers to features that impact the way a product works or is manufactured. All courts will deny protection if a product feature serve...

Navigating Liability Across Multiple Ventures for Michigan Businesses: Alternatives to Series LLCs

  The Problem: Managing Liability Across Different Ventures   Many business owners manage multiple ventures. This often entails dealing with different types of risks and liabilities. Whether selling different lines of products or operating multiple services within a business, it is really important to keep liabilities isolated to protect assets. For example, consider a business owner who owns both a restaurant and a catering business. In the event that a customer sued the restaurant for something like a slip-and-fall accident, the owner’s catering business could also be at risk if the ventures are not legally separated. Without proper legal structures, a lawsuit or financial issue affecting one part of the business could easily spill over, putting the entire business at risk. For this reason, business owners should look for ways to separate liability across their ventures and ensure that issues in one area don't threaten the stability and success of the others.   Liab...