Reefer money madness

What do Maui Wowie, Acapulco Gold and Albino Rhino all have in common?

The answer, surprisingly enough, goes beyond the fact they’re all strains of marijuana.

They were all filed as trademarks by Colorado-based syndicate Panatella Brands.

Over the past few years, public antagonism toward cannabis has largely subsided.

Medical marijuana dispensaries are commonplace in states permissive of marijuana use, particularly California.

In April, the U.S. Patent and Trademark Office instituted a new trademark category: “Processed plant matter for medicinal purposes, namely medical marijuana.”

The agency, a part of the Department of Commerce, posted the category on its website.

In three months, the office received more than 250 marijuana-related claims.

The so-called “green rush” in California has prompted many to attempt to legally capitalize on the estimated $14 billion-a-year black market.

Undoubtedly, landing trademark protection for some of the common nicknames for pot could potentially bring in a hefty source of licensing revenue to whoever is lucky enough to acquire federal protection.

The only problem with getting a federal trademark for marijuana lies in the fact that marijuana also happens to be illegal at the federal level.

As such, the patent office has since rescinded the marijuana category and has yet to approve of a single marijuana-related claim.

Some states allow the non-enforcement of marijuana laws, knowing the federal government can’t possibly enforce marijuana laws at the local level with any kind of efficiency.

It can, however, deliver a harsh blow to state budgets.

A study by the Rand Drug Policy Research Center estimated that California would save more than $300 million annually by not enforcing marijuana laws. However, California could lose an equivalent amount in federal funding if the state decides to completely circumvent the feds.

Taxation of marijuana has been a popular justification for legalization as a means of offsetting the economic distress that has plagued the Golden State recently.

The California Board of Equalization, which administers California’s alcohol and tobacco taxes, estimates the state could reap $1.4 billion in taxes if a now-stalled bill to legalize pot is passed by the state legislature.

However, this figure fails to account for the possibility that if marijuana is decriminalized or legalized, the price of marijuana could fall drastically.

The San Francisco Chronicle reports that “legalizing pot would drive down the price of high-grade marijuana from about $375 per ounce to as little as $38 per ounce.”

Of course, this would decimate tax revenue from marijuana and might, along with the withdrawal of federal funding, ultimately offset any added economic advantages of legalization.

I believe that if marijuana were ever to be legalized, tobacco companies would probably end up taking home the spoils of the marijuana war.

They already possess core competencies in the production, distribution, marketing and financing of tobacco products — and I can’t see how Tommy Chong is going to compete with the financial prowess of R.J. Reynolds.


E-mail: halderfe@indiana.edu