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As such, the patent office has since rescinded the marijuana category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.