Legal updates and opinions
News / News
CANNABIS REMAINS ABUZZ
By Donvay Wegierski, Director
An adult may possess and use cannabis in private for personal consumption in South Africa. This is according to the South African Constitutional Court ruling in September 2018 wherein it found that certain provisions of the Drugs and Drug Trafficking Act and the Medicines and Related Substances Act infringe upon the right to Privacy.
While the commercial sale of cannabis remains illegal in South Africa this playing field appears to be changing fast. Earlier this year the City of Cape Town announced that it will be releasing vacant land for the production of medical cannabis and further research is a bold step, anticipating an initial capital investment of over R600 million for the construction of phase one with over a further R1 billion anticipated by phase two, projected within the next four years.
Recent press releases state that a company, which will produce cannabis on a farm near Stellenbosch in the Western Cape has been granted a licence by the South African Health Products Regulatory Authority having applied in 2017.
And brand owners are taking note. The opportunities to create new brands for cannabis-based products appear endless and so too should the requisite protection of intellectual property protection be in place in the territories and, in respect of trade marks, classes of relevance.
Canada is the first G-7 country allowing the legal consumption of recreational cannabis having passed the Cannabis Act on 21 June 2018 regulating the growth, distribution and sale of recreational cannabis in Canada.
The Canadian Trade Mark Office is also handling a few thousand trade marks covering cannabis. In June 2019, Canada’s requirement to prove “use” to register a trade mark was removed and it is likely that the office is experiencing a flurry.
Although the USA still regards the use and sale of cannabis as illegal under Federal Law, with nine states and Washington DC permitting the recreational use of cannabis, absolute prohibition in those states has effectively stopped. Benefits shown by the use of medical marijuana is a large contributor to this change.
Regardless of the Territory, two principles should be kept in mind when choosing a trade mark:
- The trade mark should not be contrary to public policy (contra bonos mores) or likely to give offence to any class of persons; and
- A trade mark should not be descriptive of the kind of quality or other characteristics of the product.
Latest News
Exchange control relaxations for Intellectual Property transactions
INTRODUCTION In the recent 2017 Budget Review, the National Treasury proposed the relaxation of the exchange control restrictions surrounding [...]
Merger thresholds in Swaziland and Tanzania – absence of a local Nexus?
It is standard practice for competition regulators, empowered by legislation to monitor and evaluate mergers, to set minimum financial or [...]
.africa domain is here
The long awaited .AFRICA domain name extension will be available as of 3 April 2017 and will be managed by [...]
The National Minimum Wage: a further update
On 8 February 2017, Cyril Ramaphosa, the Deputy President of South Africa, disclosed preliminary details regarding the implementation of a [...]
Mirror, mirror on the wall, who’s the fairest of them all? Most favoured nation clauses from a Competition Law perspective.
Most favoured nation ("MFN") clauses, also known as price parity clauses or most favoured customer clauses, which appear in vertical [...]
Significant changes to government/parastatal procurement regulations promote Broad Based Black Economic Empowerment
New regulations in terms of the Preferential Procurement Policy Framework Act ("PPPFA") have been published and will take effect from [...]

