SAN FRANCISCO – AAXLL Supply Co d/b/a Balance CBD, an innovator of Hemp Derived CBD products responded today to claims by Charlotte’s Web, Inc. (CWI) in the U.S. District Court for the Northern District of California.
In its numerous counterclaims, AAXLL alleges CWI engaged in false advertising, unfair business practices in violation of the California Business & Professional Code, and improper registration of state trademarks in California and Colorado. AAXLL seeks damages, attorney’s fees, cancellation of CWI’s state registered trademarks, and declaratory relief. AAXLL’s filing vigorously disputes CWI’s central allegation that Charlotte’s Web is not the name of a strain of hemp. AAXLL filings catalogues a tremendous body of published works, not to mention repeated admissions by CWI over the years, cementing the public’s and the industry’s understanding that “Charlotte’s Web” is a strain. AAXLL CEO Joseph Maskell notes that CWI itself referred to “the Charlotte’s Web strain” in its own 2019 public offering documents.
Maskell also states, “U.S. federal trademark law already dictates that cultivar or strain names are generic from the get-go, so the Charlotte’s Web name of the strain was never protected as a trademark. CWI cannot prevent the rest of the world from referring to Charlotte’s Web as a strain of hemp any more than a French winery could prevent the world from referring to Chardonnay as a varietal name of grapes.”
In October 2019, the United States Patent & Trademark Office rejected CWI’s trademark application for “Charlotte’s Web” in a nonfinal Office Action. The USPTO specifically found that the name “Charlotte’s Web identifies a particular strain of low THC, high CBD content Cannabis sativa plants” which does not function as a trademark.
AAXLL’s Maskell comments that USPTO’s rejection of CWI’s trademark application would demonstrate CWI made a serious mistake in adopting the generic name of a strain as its corporate and brand name, since everyone has the right to use the name of a strain. Maskell concludes, “the family run Balance CBD brand will not be bullied by CWI. It’s shameful that a large publicly traded corporation uses such tactics to intimidate competition to try to cover up their past mistakes”
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The case is Charlotte’s Web, Inc. v. AAXLL Supply Co LLC d/b/a Balance CBD, Case No. 4:20-cv-02692-YGR in the Federal District Court for the Northern District of California.
About AAXLL Supply Co
AAXLL is a privately held branding and IP company that has developed leading cannabis and CBD brands for North American and European markets. Doctor formulated products with full line including CBD Oil Tinctures, CBD Topicals, CBD Pet Products, CBD Beverages and CBD Sexual Health. An emphasis on using sustainable organic and natural ingredients and ensuring a living wage for employees. As well as developing best in-class products for consumers to enjoy, AAXLL is a socially conscious organization that believes in philanthropic acts of kindness through its brands.
Most recently, through its market leading brand Balance CBD, a supplier of hemp derived CBD products, AAXLL launched initiatives to support front line workers to aid their response to COVID-19. Balance CBD also donated profits from its top selling line of CBD infused gummies to the Earth Alliance Amazon Forest Fund founded by actor Leonardo DiCaprio and others in 2019.