The economics of intellectual property protection for cannabis. Challenges, opportunities and the evolution of patents

This chapter examines the economics of intellectual property (IP) protection in the evolving cannabis industry. As cannabis transitions from an illegal to a regulated market, IP rights—particularly patents—play a critical role in fostering innovation, enabling market differentiation, and enhancing profitability. The chapter outlines the unique challenges posed by legal fragmentation, historical stigma, and regulatory barriers, while also highlighting opportunities for branding, licencing, and strategic positioning. Through comparative insights with the pharmaceutical industry and detailed analysis of patent trends across time, geographies, and firms, the chapter provides a comprehensive view of how IP is shaping the competitive dynamics and growth trajectory of the global cannabis sector.