RAW wins $8.7 million lawsuit for unfair competition

HBI Innovations, the parent company of Raw cannabis rolling papers, has been awarded $8.7 million in damages in a copyright infringement case concerning the design and likeness of the’packaging for its rolling papers.

The case against the AIMS group and its subsidiaries

The dispute stems from allegations that AIMS Group USA Corp. and its subsidiaries, including Florida One Wholesale and Brocone Organic Private, would have copied the design distinctive’packaging and the language of Raw's products. According to the decision by Judge Brenda Weksler of the U.S. District Court for the District of Nevada, the offending products were sold under the «Brocone» brand and manufactured in India.

HBI Innovations argued that these infringements misled consumers, damaging the trust and reputation Raw had built up over the years.

Josh Kesselman, founder of HBI Innovations, expressed his desire to preserve the brand's authenticity, saying: «We've dedicated our lives to making the best rolling products on the planet. Our customers are our family. Whether it's a counterfeit or a look-alike, we must protect our family from this type of deception.»

Brocone and Raw side by side

Financial and legal results

The court ordered AIMS Group and its subsidiaries to pay :

• Over $3 million in profits attributable to counterfeiting
• Over $5.6 million in statutory damages
• 10,000 in legal fees for AIMS, Florida One Wholesale and Brocone Organic Private

The legal battle lasted two years and involved numerous parties. Notably, HBI Innovations had already reached a confidential agreement in September 2023 with NEPA Wholesale, the main US distributor of Brocone products.

The ruling also serves as a warning to other companies attempting to imitate established brands. By holding AIMS Group liable, the court has sent a clear message that intellectual property violations will not be tolerated, especially when they are designed to mislead consumers.