Canopy Growth Buys Supreme to Grow Flower Operations But What About Patents?

Canopy Growth along with its competitors like Aurora Cannabis have a history of buying rather than building to scale up operations and product productions. At first, cannabis companies were having trouble reaching demands, but with all of their efforts towards expansion, some have had to sit on surpluses of products like what has happened in Oregon and is now happening in Washington. Canopy’s most recent acquisition of cannabis producer Supreme is going to assist Canopy’s premium flower offerings in Canada but doesn’t provide them with any new patent assets. Since Patent Forecast’s highlight in 2019 of Canopy Growth and Aurora Cannabis’ lack of patents, they have begun a steady filing of their own patents – Canopy Growth focusing on devices, compositions, and food and beverages while Aurora Cannabis is currently focusing on developing new cultivars

While Canopy Growth has a lot to gain from its purchase of Supreme, Supreme will also be able to benefit from the acquisition. Canopy Growth’s patent portfolio covers nearly all aspects of the Patent Forecast® Patent Radian® from cultivation to processing. Since December 2019, Canopy Growth has been filing patents for water soluble cannabinoid compositions which will be lucrative for the food and beverage side of cannabis. Combining its patented processes with high-end premium brands of cannabis that Supreme offers will be a move many others will look to repeat. Canopy Growth has found the right balance of buying and building now, and it has been the motive for outside investors like Corona beer maker Constellation Brands. Aurora Cannabis is following in Canopy Growth’s footsteps and making sure to secure patent assets while expanding its brand, but it is a long way from Canopy Growth’s extensive portfolio of patents. For Aurora Cannabis to really compete, it will need to focus more on building its own patent assets or making strategic acquisitions that provide it with IP.

Cannabis is one of the fastest growing sectors in the world with over 3,500 patent filings marking a 370% increase in the past 5 years. Well-known brands like Corona, Coca-Cola and many others see the green at the end of the rainbow and want in. To stay updated with all of the patent and market developments in Cannabis, sign up for the Cannabis Patent Forecast®. Start your trial today!