Despite the recent dismissal of one of its lawsuits against an edibles maker, Hershey seems ready to return to its legal war on edibles makers.
The company’s most recent day in court with the industry was a loss. A suit against an Oakland, Calif., dispensary was dismissed earlier this year after the retailer fought back.
Harborside Health Center, which operates two dispensaries in the state, was targeted by the candy giant. The retailer claims it spent months dealing with threats from the company’s lawyers. It finally countersued in December. The Hershey suit was dismissed in late January.
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Hershey wanted Harborside to pay $20,000 for “liquidated damages” and an agreement with a confidentiality clause, Harborside attorney Henry Wykowski told Marijuana Business Daily.
“Harborside refused confidentiality, and I told Hershey’s that we were prepared to proceed with the litigation,” he said. “And guess what happened? They caved the next day.”
Earlier in 2017, Hershey had sued Good Girl Cannabis Co., a Northern California edibles maker. The owner told MBD that the legal action was settled quickly and amicably.
The legal actions came after it looked like Hershey had given up trying to chase the growing industry. In 2014, the company sued a Colorado edibles maker for infringement, citing products such as Ganja Joy bars and Dabby Patty. The candy maker produces Almond Joy and York Peppermint Patties.
Colorado-based medical marijuana manufacturer Tincture Belle settled the suit.
A second suit filed against Seattle dispensary Conscious Care Collective ended with the dispensary claiming it convinced Hershey that the dispensary was a reseller, not a manufacturer.
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“At the end of it, we walked away not owing them anything,” Conscious Care co-founder Trek Hollnagel told MBD. The business closed in 2016.
The Harborside suit didn’t involve chocolates, but rather “Jolly Meds,” a candy Hershey contended was a little too close in the marketing to Jolly Rancher. As with Conscious Care, the retailer claimed as a reseller, not a manufacturer, it wasn’t liable. The producer, changed the name of the goods to J:Meds late last year and has a trademark pending approval by the government.
