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Contract dispute results in Marijuana business litigation

Business dispute can take many forms, from employee discrimination lawsuits to antitrust litigation. While the scope of business law is truly unlimited, one of the most common types of business-related disputes that arise involves contracts. Contract disputes, from allegations of breach to violations of licensing agreements, can have a significant financial impact on businesses. That is why it is important that Colorado companies address these matters aggressively and immediately.

It was recently reported that two Colorado businesses currently are involved in a contract dispute over mints that are laced with pot. According to news reports, Bridge Marketing LLC of Longmont, Colorado, has filed suit against Dixie Elixirs & Edibles in Colorado district court. The complaint reportedly accuses Dixie Elixirs, which does business as Left Bank LLC of Denver, of breach of contract and trademark infringement. The legal dispute is over the packaging and sale of a product known as "MED-a-Mints."

In the lawsuit, Bridge Marketing states that Dixie Elixirs agreed to manufacture, package and distribute the product to retail establishments in exchange for a percentage of the sales. This is reportedly in accordance with a 2012 licensing agreement between the two companies. In 2014, however, Dixie Elixirs allegedly changed the packaging of the product without consent. Bridge alleges that the new and unauthorized packaging for the product violates a registered trademark, thereby violating the licensing agreement.

Legal disputes involving breach of contract are common in the U.S. business world. While the key is to have experienced counsel draft a solid contract in the first place, establishing a strong foundation from the very beginning, sometimes it just doesn't matter. When this is the case, and a business dispute over breach of contract or some other legal infringement does arise, it is important to work aggressively to resolve the matter early in order to protect the business, as well as the product, from any and all potential losses.

Source: Denver Business Journal, "Colorado pot companies bicker over mint trademark," Dennis Huspeni, April 22, 2014

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