When a cannabis testing company with three labs wanted to expand their operations, they faced a daunting challenge. The federal ban on interstate marijuana shipments meant they must open their own labs in each state, requiring a lot of time and money. But that wasn’t their only option. Instead, they decided to license their processes, name, and technologies to partners already operating in different states.

Now the cannabis testing company has licensees with branded labs in Alaska, Hawaii, Maryland, Pennsylvania, and Washington DC and recently announced license deals in Los Angeles and Arkansas. They focus on training and support to ensure the consistency and quality of testing results across all their licensed labs.

Cannabis is one of the fastest-growing industries. In the US, the cannabis market within the legalized states is estimated to exceed $14 billion dollars and is projected to grow to over $30 billion by 2025. But unlike most industries, it isn’t legal in many parts of the US. Because of the regulatory environment, the industry is highly fragmented with many companies operating in limited geographic areas.

That’s why licensing is a perfect strategy for the cannabis industry. Since most legal cannabis products can’t cross state lines, they must be manufactured and distributed within a specific territory (state). Licensing lets you craft agreements to fit the exact geographic territories where your cannabis products or services are legal. Now your cannabis business can grow on a “national scale” and generate royalty revenue from individual licensees within their legal territories.

As global demand for cannabis products continues to heat up, more companies are pursuing licensing agreements to capitalize on the fast-growing markets. It’s also the only way to grow and remain competitive in a highly regulated and fragmented market such as the US. Developing and acquiring intellectual property is one of the most critical strategies for cannabis companies. IP gives you more than just market protections and a competitive edge. IP also gives you an ability to scale your cannabis business “nationally”, generate more revenue, attract investment, and enhance your company valuation for an exit.

So the question is, how do you use licensing to scale your cannabis business? And the best place to find out is at the upcoming free online workshop, IP Licensing Strategies for Cannabis Companies. During this workshop, you’ll learn what cannabis IP is, why the demand for cannabis IP is growing, and how to use licensing to capitalize on market opportunities to expand your cannabis business.

Click this link to sign up for this free workshop.

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