AK Futures LLC v. Smoke Tokes LLC

I. BACKGROUND

AK Futures filed suit against Smoke Tokes for counterfeiting and the willful infringement of AK Futures’s intellectual property rights in its CakeTM (“Cake”) brand of hemp derivative Delta-8 products. Compl. ¶ 1. AK Futures owns and sells Cake branded Delta-8 products, including disposable electronic delivery systems and electronic cigarette e-liquid. Id. ¶ 2. Delta-8 is a hemp- derived product, regulated under the PACT Act and other regulations. Id. AK Futures does not manufacture, distribute, or sell Delta-9 vaping products. Id. The Cake product is the top-selling brand of Delta-8 vaping goods in the country. Id. AK Futures launched Cake in October 2020, and since then, demand has been overwhelming, with revenue from sales of authentic Cake products exceeding $44,000,000. Id. ¶ 14. By virtue of this success, AK Futures has established substantial consumer goodwill in the Cake mark, trade name, and designs. Id. ¶ 15. AK Futures has also filed for registration of the Cake marks before the United

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CIVIL MINUTES - GENERAL

Case No. 8:21-cv-01061-JVS (ADSx) Date November 17, 2021…