The creative and inventive boom of Cannabis. Enrique U. Alcázar

The intellectual property, established within the group of economic, social, and cultural rights, or 2nd. generation human rights, safeguard the creative and inventive expression of the human being, granting privileges and rights of exclusive use, operation, disclosure, transfer, etc., to authors, artists, inventors, and improvement enhancers. The protection covers the rights related to artwork, distinctive signs, new creations, and even vegetable varieties.

In terms of Cannabis, we are facing the regulation of the plant for multiple uses, such as medical, recreational, industrial, and some others. Likewise, the social, political, economic, sanitary, and cross-cutting impact on different sectors has been on the public agenda for some years ago. Although little discussed, the correlation and deep bonding between intellectual property and Cannabis development in all its potentialities are not surprising.

In Mexico we are at the gates and opening of a myriad of possibilities for the use and operation of the Cannabis species, expecting a systematic and regulated standardized framework, but also, prevailing the common good, safety, and liberties of the consumer or user. Besides motivating a healthy competition, the new legislation eradicates abusive, unfaithful, and deceiving practices under a legal framework of warranties for the stakeholders, which will only be possible with clear rules and even opportunities for the private sectors that produce, manufacture, and provide services. Also, the bond between these sectors and the health authorities must be comprehensive, as well as the understanding and acceptance of the value and impact of the intellectual property of this whole new cultivation, and the implementation of better compliance practices and policies.

What is the value of Cannabis? In recent years we have been immersed in a new digital and technological revolution, where the value of companies, services, and consumer goods is originated, integrated, and based on creativity, originality, design, technology, and innovation while the production activities are relegated to the background. Whoever controls the trade channels owns the market, so for footwear and textile products, the site of manufacture is irrelevant for the consumer, who chooses the product by design and brand. Compared to agricultural products, the trade chain or the transformation process is more important. Do you know who produces the coffee that you drink in your favorite coffee shop, or where is the manufacturing site?

The claiming of certain products and production processes is through the declaration of designation of origin, which bonds the product to a specific geographic area from which it originates, provided the quality, characteristics, or reputation are due to exclusively and essentially the raw materials and production processes natives of the geographic origin, as well as the natural and cultural factors involved in the creation of the good. In Mexico there are 18 designations of origin, being Tequila the most renowned of them, although more beverages are being included such as Mezcal, Sotol, Bacanora, Raicilla, Charanda, or food like Morelos’ rice, Veracruz and Chiapas’ coffee, Papantla’s vanilla, Mango Ataulfo, Grijalva’s cocoa, Yahualica’s pepper, and the notorious Yucatan’s Chile Habanero; and even handcraft like Talavera porcelain, Olinalá’s woodcraft, and Chiapas’ amber. So, we are convinced that, in the case of Cannabis, soon we will have our designations of origin. This provision is protected under the Lisbon Agreement, where Mexico, along with other 30 countries, is a member. However, for non-member countries, the protection is extended through a geographical indications program, included in most of the international treaties.

Recently, I have found several studies, treaties, articles, presentations, conferences, and more about Cannabis, some more substantial and formal than others. Suddenly, lots of experts, cartoons, videos, methods, farming, and watering processes, and more have flourished, all of them protected under copyright, e.g., primal, derived, collaborative or on-demand works. The bottom line is to identify and respect the rights that imply both moral and property values for their authors. Even the last amendment to the Federal Law of Copyright includes effective and protective technological measures, as well as information on the management of rights on the Internet and digital platforms in order to enforce such rights.

Another relevant role in the Cannabis market is the vegetable varieties and the rights of their holders for their exclusive or temporary use by themselves or third parties without their consent. A vegetal variety is a species’ subdivision with similar characteristics from its parents, and both stable and homogeneous. The vegetal variety, dissemination material, production, re-processing, distribution, marketing, as well as the production of other varieties and hybrids for commercial purposes are critical, therefore in terms of Cannabis, the relevant characters, phenotype, and genotype expressions (as the case of three plant species, Cannabis sativa, C. indica y C. ruderalis), have origins, applications, effects, and even different farming methods. Based on different methods, new stables varieties have been and will be developed.

The seed origin, plant traceability, and cultivation method will also be critical not only for the producer in terms of industrial or commercial issues, but for backyard planting, Cannabis clubs, or self-cultivators, who also demand safety, transparency, and knowledge on the origin of the product that cultivate and eventually consume. Mexico has a great potential to develop new vegetal varieties and become an exporting leader of seeds, plants, and manufactured products.

One of the most important issues are the medical and therapeutic applications of the Cannabis, derived from the cannabinoids, being the most renowned the THC and CBD because of their applications and effects; however, there are six more of them with different effects and applications, some less studied though: CBC, CBG, CBN, CBDa, THCa, and THCv. There are research and development protocols that assess new molecules and active substances with the ability to develop drug products with different indications, and under the provision of an invention patent, these products can be protected and marketed within the pharmaceutical industry.

In addition to drug products, greenhouses, watering and farming technologies, the transformation processes, equipment, instrumental, devices and other apparatus, provided they are new, resulting from the inventive activity and subject to industrial applications, could be deemed as inventions or innovations, protected, and marketed as patents or models of utility.

Packaging, trade channels, establishments, drug stores, coffee shops, clinics, spas, medicines, supplements, collection and processing centers, food (human and animal), goods, snacks, accessories, and memorabilia related to Cannabis, all of them shall comply with the required regulation, but also all these brands shall distinguish themselves from each other, conveying their values, characteristics, and essence, and interacting with their market target. This can only be achieved through the proper protection of their brands, slogans, corporate image, and all those elements that allow identify and distinguish the products and services from each other, including all the nonevident information which will pose economic and competitive advantages in terms of confidentiality, property, priority, and privileges, protected under the industrial secrecy.

It is evident that intellectual property impacts essentially all our business, industrial, production, and daily activities. With the opening of the Cannabis sector, there will be a boom of creative and inventive options; however, the winners will be only those with the vision to protect their intellectual and intangible assets.

In the beginning, or even before, we would see the rising of products, business opportunities, investments, etc., not all of them legitimate, formal, or serious though. It is required to respect and guarantee the consumer’s safety and liberty as well as the healthy competition, and the intellectual property rights involved. So, we would be witness, players or co-creators of a new pushing sector into the economy, with the potential described above, and even more.

Overall, regulations are imperfect but necessary. A starting point is required to evaluate and test the sector development and performance and increasingly improving the opportunities areas. Bodies like the Mexican Board of Cannabis and Hemp must be facilitators between the agricultural and business sector, and the authorities, seeking to establish better practices.

The different players that participate in the chain of valor, from the producer to the user, including laboratories, industry, traders, distributors, services providers, companies, and authorities must observe the sector’s safety, legality, traceability, and formality to avoid practices that undermine the free competition, compromise the safety and warranties of the user, and represent a risk for the public health.

Thus, the recognition, respect, protection, and defense of intellectual property rights will be critical in the rise of this high-impact booming industry, outlining differentiators and innovative and original elements.

Derived from the R&D and entrepreneurship, we are to witness a creative and inventive surge of technological products and services, commercial channels, and layouts, immersed in a market where many would like to participate; however, only those prepared, advised, and properly related shall succeed.

Enrique U. Alcázar

Treasurer of the Consejo Mexicano de Cannabis y Cáñamo. Entrepreneur, leader and reference in franchise structuring, business acceleration and high impact incubation. Promoter of culture, defense and protection of intellectual property. Founder of Project 72 and Alcázar y Compañía.