HEXO Reaches Settlement After Filing Lawsuit for Trademark Infringement
November 05 2020 - 5:30AM
HEXO Corp (“HEXO”, or the “Company”) (TSX: HEXO; NYSE: HEXO) is
pleased to announce it has reached a settlement after pursuing
legal action against a California business using the HEXO name and
trademark.
The California-based defendant, Assi Project Management, LLC
(“Assi”), was using HEXOCBD to sell CBD products in the United
States. HEXO sued Assi and its principals in the U.S. District
Court for the Southern District of California for unfair
competition and trademark infringement, arising from their
unauthorized selling of CBD products and services under the name
HEXOCBD, which the Company alleged infringed HEXO’s intellectual
property rights, including its trademarks and trade name.
“The HEXO brand is sufficiently established, both in Canada and
in the U.S., that if another company – in the same industry, no
less – uses it as a part of its mark, HEXO believes the situation
creates confusion for the consumer and potential for reputational
issues, and is ultimately a fair competition issue,” said Roch
Vaillancourt, General Counsel for HEXO.
HEXO is an award-winning consumer packaged goods company that
creates and distributes prize-winning products and services for the
cannabis market. The Company has been using HEXO as a trade name
and mark since at least June 2018 and, with the advent of
legalization in Canada, has fully adopted the name for use in
connection with its products and services throughout both the
adult-use (recreational) and medical cannabis markets. The Company
has also established its U.S. presence with, among other things,
the creation of HEXO USA Inc., and has been listed on the New York
Stock Exchange since January 2019.
The settlement between HEXO and the defendants includes, among
other items, the following provisions that are included in a
permanent injunction approved by the Court:
- Defendants are permanently enjoined from using or registering a
company name, trademark, or domain name that contains the term HEXO
or any similar term, and from using any mark, name, or designation
in any manner which is likely to cause confusion as to an
affiliation with, or association or sponsorship by HEXO;
- Defendants must destroy any and all materials which contain any
reference to HEXOCBD and delete any reference to the term HEXO, or
any similar term, from any and all websites and social media
postings, and has filed notices of abandonment at the U.S. Patent
and Trademark Office for its HEXOCBD trademark applications;
and
- Assi has transferred and assigned all domain names it owns
containing HEXO or any similar term (including the HEXOCBD domain
name) to the Company.
“I’m pleased we were able to reach a settlement, as it is
recognition that consumers associate the HEXO mark with our company
and sends a message that we will not tolerate violations of our
trademark rights,” added Sebastien St-Louis, CEO and co-founder of
HEXO. “We are creating a company and brands that can stand the test
of time, and that can grow in legal markets as they become
available to us.”
Earlier this year, HEXO announced that it is expanding its
partnership with Molson Coors to create a joint venture which will
explore opportunities for non-alcohol hemp-derived CBD beverages in
Colorado.
About HEXOHEXO Corp is an award-winning
consumer packaged goods cannabis company that creates and
distributes innovative products to serve the global cannabis
market. The Company serves the Canadian adult-use markets under its
HEXO Cannabis, Up Cannabis and Original Stash brands, and the
medical market under HEXO medical cannabis. For more information
please visit hexocorp.com.
Forward Looking StatementsThis press release
contains forward-looking information and forward-looking statements
within the meaning of applicable securities laws (“forward-looking
statements”). Forward-looking statements are based on certain
expectations and assumptions and are subject to known and unknown
risks and uncertainties and other factors that could cause actual
events, results, performance and achievements to differ materially
from those anticipated in these forward-looking statements.
Forward-looking statements should not be read as guarantees of
future performance or results. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The Company disclaims
any intention or obligation, except to the extent required by law,
to update or revise any forward-looking statements as a result of
new information or future events, or for any other reason.
Investor
Relations:invest@HEXO.comwww.hexocorp.com
Media Relations:(819)
317-0526media@hexo.com
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