Canadian cannabis manufacturer Hexo Corps confirmed it had reached a settlement following a trademark-infringement lawsuit against California-based CBD producer Assi Project Management.
According to a press release issued on Thursday, Hexo filed a lawsuit against Assi for infringement of its trademark in the US District Court for the South District of California after it was established that Assi had rolled out CBD products in the US market under the name HEXOCBD.
The Canadian cannabis company said the settlement included a permanent injunction that prevents Assi and its stakeholders from using any brand name with the word HEXO or a similar term. The settlement also demands that Assis must destroy all materials labeled HEXOCBD or any referencing to the term HEXO.
Assi also withdrew all US trademark applications for HEXOCBD and has forwarded its website domain names containing the term HEXO to the Canadian cannabis company.
While issuing a statement regarding the lawsuit and the settlement, Hexo Chief Executive Officer Sebastian St.Louis said the settlement is a warning that the cannabis company will not tolerate any violations of its trademark rights. He further asserted that they are creating a company that can withstand the test of time and grow in the legal markets as they become available to all stakeholders.
The marijuana processor’s statement mentioned that the company, in collaboration with its beverage partner, Moison Coors, is developing hemp-derived CBD beverages in Colorado. Already the Hexo-Moison beverage joint venture has launched adult-use cannabis drinks in Canada this year.
Hexo Corps, based in Ottawa and Ontario, recently issued its revenue reports posting a net loss of 564 million Canadian dollars ($419 million) for its 2021 financial year.
The company trades its shares as Hexo on the New York Stock Exchange and the Toronto Stock Exchange.