Five Stories That Matter in Michigan This Week – June 13, 2025

  1. Supreme Court Eliminates Higher Burden for “Reverse Discrimination” Claims

The U.S. Supreme Court unanimously ruled in Ames v. Ohio Department of Youth Services that employees claiming workplace discrimination face the same burden of proof regardless of whether they belong to a majority or minority group. The decision overturned the “background circumstances” rule that required straight employees and other majority group members to meet a higher standard when proving discrimination under Title VII.

Why it Matters: This ruling creates a uniform standard for Title VII discrimination cases and may lead to increased reverse discrimination claims in the workplace. Employers should prepare for potential challenges to diversity, equity, and inclusion initiatives, as majority group members can now more easily assert discrimination claims without having to prove unusual circumstances that suggest their employer discriminates against the majority.

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  1. Right to Withhold Rent for Repairs Bills Head to Senate Floor

Legislators have introduced the “Tenant Empowerment Package” which includes Senate Bills 19 through 22. In the package, it would require landlords to begin repairs on defective appliances or hazardous situations within 24 hours upon written notice from the renter. If the repairs have not started within 24 hours, the renter has the ability to withhold rent until the repairs are done, or they’re able to start repairs themselves, and deduct the costs from their rent.

Why it Matters: The bills would have a direct fiscal impact on the State, local governments, or local court systems. They could reduce evictions for local systems, which would have indirect benefits related to homelessness, productivity, and tax revenue.

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  1. Michigan CRA Publishes April ’25 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sale of an ounce of cannabis in April 2025 was $62.23, a decrease from $65.14 in March 2025. This is a decrease from April 2024, where the average price was $86.61.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Duty to Defend and Indemnify

When an insurer receives a claim, the question of whether it will defend and/or indemnify is easier to answer in some cases than others. When interpreting an insurance policy, there are two questions involved: (1) Does the policy provide coverage?; and (2) If the policy provides coverage, is there an exclusion that negates the coverage?

Why it Matters: Although an insurer may deny coverage and in turn, decline to provide a defense, it should not do so unless it is very clear that none of the allegations are covered under the policy at issue. It is also important for insurers to consider whether the policy language might be governed by the laws of a different state. Read more from your Fraser Trebilcock attorney.

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  1. Ensuring Your Business is Protected Through Copyright

Whether it is a symbol that you use for branding or a formula that makes your product unique, your intellectual property assets need to be protected. Some of the most recognizable forms of intellectual property fall under copyrights, patents, and trademarks.

Why it Matters: A copyright is the exclusive legal protection that covers an original work of authorship, and it can be difficult to enforce your copyright if the work is not registered with the U.S. Copyright Office. Our copyright law attorneys can help you think through the issues and take the actions necessary to ensure your work and business are protected. Learn more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Real Estate | Jared Roberts
Cannabis Law | Sean Gallagher
Insurance | Dakota Larson
Intellectual Property | Andrew Martin

Five Stories That Matter in Michigan This Week – June 6, 2025

  1. IRS Announces 2026 Health Plan Contribution Limits

On May 1, 2025, the IRS released Revenue Procedure 2025-19, announcing modest inflation-adjusted increases to health savings account contribution limits and other health plan parameters for 2026. Key changes include HSA contribution limits rising to $4,400 for self-only coverage (up from $4,300) and $8,750 for family coverage (up from $8,550), while high-deductible health plan minimum deductibles increased to $1,700 for individuals and $3,400 for families.

Why it Matters: These increases are smaller than previous years’ adjustments, reflecting current inflation trends that directly impact employee benefit planning. Employers should review their 2026 benefit designs and employee communications to incorporate these new limits, ensuring compliance and maximizing tax-advantaged savings opportunities for their workforce.

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  1. Duty to Defend and Indemnify

When an insurer receives a claim, the question of whether it will defend and/or indemnify is easier to answer in some cases than others. When interpreting an insurance policy, there are two questions involved: (1) Does the policy provide coverage?; and (2) If the policy provides coverage, is there an exclusion that negates the coverage?

Why it Matters: Although an insurer may deny coverage and in turn, decline to provide a defense, it should not do so unless it is very clear that none of the allegations are covered under the policy at issue. It is also important for insurers to consider whether the policy language might be governed by the laws of a different state. Read more from your Fraser Trebilcock attorney.

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  1. Ensuring Your Business is Protected Through Copyright

Whether it is a symbol that you use for branding or a formula that makes your product unique, your intellectual property assets need to be protected. Some of the most recognizable forms of intellectual property fall under copyrights, patents, and trademarks.

Why it Matters: A copyright is the exclusive legal protection that covers an original work of authorship, and it can be difficult to enforce your copyright if the work is not registered with the U.S. Copyright Office. Our copyright law attorneys can help you think through the issues and take the actions necessary to ensure your work and business are protected. Learn more.

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  1. Michigan Cannabis Exceeds $270 Million in April ’25

Cannabis sales surpassed $270 million in April 2025, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $269,957,758.67, while medical sales came in at $515,226.93, totaling $270,472,985.60.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Gain Peace of Mind Through Life’s Toughest Obstacles

When facing charges of any kind, criminal law experience matters most. You need someone on your side with inside knowledge to provide guidance for a solid defense, and someone who understands the extreme sensitivity of criminal law cases and act in a timely manner to resolve issues.

Why it Matters: Our attorneys have extensive experience representing individuals and businesses in all stages of criminal proceedings. We will keep you informed of your best options and strategies every step of the way, finding a resolution with a foundation that will help you move forward. Learn more.

Related Practice Groups and Professionals

Insurance | Dakota Larson
Intellectual Property | Andrew Martin
Cannabis Law | Sean Gallagher
Criminal Law | Robert Andretz

Five Stories That Matter in Michigan This Week – May 9, 2025

  1. Michigan Proposes Ban on Noncompete Agreements

Earlier this year, Michigan legislators introduced House Bill 4040, which aims to prohibit employers from implementing or enforcing noncompete clauses in employment contracts. The proposed legislation contains narrow exceptions only for situations involving the sale of business ownership interests or when an employee is responsible for selling the majority of a company’s assets.

Why it Matters: The proposed legislation comes amid significant national attention on noncompete agreements following the FTC’s attempted ban and the subsequent nationwide injunction blocking its enforcement. This has prompted many states to reconsider their noncompete policies. If passed, Michigan would join a select group of states including California, Minnesota, North Dakota, and Oklahoma. We will continue to monitor for new developments regarding this legislation.

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  1. Navigating Through Life’s Toughest Obstacles

When facing charges of any kind, criminal law experience matters most. You need someone on your side with inside knowledge to provide guidance for a solid defense. We have extensive experience representing individuals and businesses in all stages of criminal proceedings.

Why it Matters: Helping clients for more than two decades, Rob is an experienced criminal defense and professional licensing attorney who has successfully represented clients in both state and federal courts in felony and misdemeanor cases in more than 50 counties across the state of Michigan. He is passionate about what he does, and, understanding the direct and collateral consequences that a criminal conviction or professional licensing sanction can bring, he compassionately works with his clients to focus on what matters most to them. Learn more.

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  1. Michigan’s First Quarter Cannabis Sales in 2025 Hits $766 Million

In Michigan, total first quarter sales in 2025 for adult-use and medical cannabis totaled $766,198,323.48.

Why it Matters: Though there are reports of declining sales of cannabis starting in 2025, the prices of cannabis and cannabis-related products continue to decrease and make consumers happy. Growers on the other hand are seeing profits decrease.

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  1. NLRB Establishes Standard for Workplace Rules

The National Labor Relations Board (NLRB) has issued a ruling in Stericycle Inc., adopting a new legal standard for evaluating the lawfulness of employer work rules. Under the previous standard, an employer was not required to narrowly tailor its rules to promote its legitimate and substantial business interests without unnecessarily burdening employee rights.

Why it Matters: Workplaces may need to review existing policies to their employee handbooks to ensure compliance, and tailor their workplace rules to service legitimate business interests.

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  1. Ensuring Your Business is Secure Through Patent Protection

Whether it is a symbol that you use for branding or a formula that makes your product unique, your intellectual property assets need to be protected. Some of the most recognizable forms of intellectual property fall under copyrights, patents, and trademarks.

Why it Matters: A patent is a legal monopoly for protecting a utilitarian device, system, machine, composition or process. When should you file? Timing is of the essence to prevent a competitor from winning the race to the Patent Office. Our patent law attorneys can help you think through the issues and take the actions necessary to ensure your work and business are protected. Learn more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Criminal Law | Robert Andretz
Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin

Five Stories That Matter in Michigan This Week – May 2, 2025

  1. CRA Files Formal Complaint Against Adult-Use Marijuana Processor

This week, the Michigan Cannabis Regulatory Agency filed a formal complaint against Pure Roots LLC, alleging the adult-use marijuana processor purchased marijuana from a non-licensed marijuana establishment, and that they failed to properly transport the marijuana in a secure transporter.

Why it Matters: The CRA is intending on imposing fines and/or other sanctions against Pure Roots LLC license, which may include the suspension, revocation, restriction, and/or refusal to renew their license.

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  1. Ensuring Your Business is Secure Through Patent Protection

Whether it is a symbol that you use for branding or a formula that makes your product unique, your intellectual property assets need to be protected. Some of the most recognizable forms of intellectual property fall under copyrights, patents, and trademarks.

Why it Matters: A patent is a legal monopoly for protecting a utilitarian device, system, machine, composition or process. When should you file? Timing is of the essence to prevent a competitor from winning the race to the Patent Office. Our patent law attorneys can help you think through the issues and take the actions necessary to ensure your work and business are protected. Learn more.

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  1. Senate Labor Committee Hears Testimony Over Independent Contractor Proposal

The Senate Labor Committee heard testimony this week regarding proposed legislation over independent contractors.

Why it Matters: A few changes SB 67 would make include implementing an ABC test, and requiring three years of wage information for similar roles. Additionally, fines and penalties for misclassification would increase, and in some cases, may lead to prison sentences for business owners.

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  1. Gain Peace of Mind Through Life’s Toughest Obstacles

When facing charges of any kind, criminal law experience matters most. You need someone on your side with inside knowledge to provide guidance for a solid defense. We have extensive experience representing individuals and businesses in all stages of criminal proceedings.

Why it Matters: Helping clients for more than two decades, Rob is an experienced criminal defense and professional licensing attorney who has successfully represented clients in both state and federal courts in felony and misdemeanor cases in more than 50 counties across the state of Michigan. He is passionate about what he does, and, understanding the direct and collateral consequences that a criminal conviction or professional licensing sanction can bring, he compassionately works with his clients to focus on what matters most to them. Learn more.

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  1. CRA to Hold Public Hearing and Receive Comments on New Package of Rules

The Michigan Cannabis Regulatory Agency has scheduled a public hearing for the purpose of receiving public comment on a proposed omnibus rule-making package on Tuesday, May 6, beginning at 9:00 a.m.

Why it Matters: The proposed rules are meant to address a number of important policy issues, including accounts receivable and hemp-derived products. Once the public hearing has concluded and the public comment period has ended, the CRA’s final rules will be sent to the Legislative Service Bureau for formal certification. The draft rules can be found here.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin
Labor, Employment & Civil Rights | David Houston
Criminal Law | Robert Andretz

Five Stories That Matter in Michigan This Week – April 4, 2025

  1. Real ID Deadline is May 7, 2025

Beginning May 7, 2025, Michigan residents will need to present a REAL ID-compliant document to fly within the United States and enter certain federal facilities to comply with federal law.

Why it Matters: The requirement arose from a 2005 law passed by Congress to establish nationwide security standards for state-issued identification documents.

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  1. Fraser Trebilcock Attorney Obtains Complete Dismissal for Firm Client

Fraser Trebilcock Shareholder and Firm Secretary Jared A. Roberts recently obtained complete dismissal of a Bureau of Professional Licensing Complaint for the firm’s client.

Why it Matters: In this instance, the real estate salesperson’s meticulous preservation of all documents, emails, and text messages were key to establishing a timeline that disproved the allegations. Mr. Roberts advises real estate salespeople to preserve everything and move every scrap into their digital deal file after closing. Read more.

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  1. Michigan Cannabis Exceeds $241 Million in February ‘25

Cannabis sales surpassed $241 million in February 2025, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $241,295,133.97, while medical sales came in at $631,498.46, totaling $241,926,632.43.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. FinCEN Update: U.S. Companies No Longer Needed to Report

On Friday, March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule regarding the Corporate Transparency Act (CTA), revising the definition of “reporting company” such that entities formed under the laws of any U.S. State or Tribal jurisdiction likely will not have to file a beneficial owner information report (BOIR).

Why it Matters: Through this interim final rule, all entities created in the United States, including those previously known as “domestic reporting companies,” and their beneficial owners will be exempt from the requirement to report BOI to FinCEN. Read more.

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  1. U.S. Court of Appeals Rules on AI-Generated Copyright Eligibility

On March 18, 2025, the U.S. Court of Appeals for the District of Columbia Circuit issued a decision for Thaler v. Perlmutter, which addressed whether a work created autonomously by artificial intelligence (AI) is eligible for copyright protection.

Why it Matters: This case reaffirms the prevailing legal principle that copyright protection is reserved for works created by humans. As AI continues to evolve, questions about the extent of human involvement necessary for copyright eligibility remain open for future consideration. ​ Indeed, the question will be directly addressed in the upcoming case in Allen v. Perlmutter in the District Court of Colorado. Read more.

Related Practice Groups and Professionals

Real Estate | Jared Roberts
Cannabis Law | Sean Gallagher
Business & Tax | Robert D. Burgee
Intellectual Property | Andrew Martin

Five Stories That Matter in Michigan This Week – March 28, 2025

  1. FinCEN Update: U.S. Companies No Longer Needed to Report

On Friday, March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule regarding the Corporate Transparency Act (CTA), revising the definition of “reporting company” such that entities formed under the laws of any U.S. State or Tribal jurisdiction likely will not have to file a beneficial owner information report (BOIR).

Why it Matters: Through this interim final rule, all entities created in the United States, including those previously known as “domestic reporting companies,” and their beneficial owners will be exempt from the requirement to report BOI to FinCEN. Read more.

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  1. U.S. Court of Appeals Rules on AI-Generated Copyright Eligibility

On March 18, 2025, the U.S. Court of Appeals for the District of Columbia Circuit issued a decision for Thaler v. Perlmutter, which addressed whether a work created autonomously by artificial intelligence (AI) is eligible for copyright protection.

Why it Matters: This case reaffirms the prevailing legal principle that copyright protection is reserved for works created by humans. As AI continues to evolve, questions about the extent of human involvement necessary for copyright eligibility remain open for future consideration. ​ Indeed, the question will be directly addressed in the upcoming case in Allen v. Perlmutter in the District Court of Colorado. Read more.

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  1. Michigan CRA Publishes February ’25 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sale of an ounce of cannabis in February 2025 was $65.21, a decrease from $66.50 in January 2025. This is a decrease from February 2024, where the average price was $91.94.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Business Education Series: Anatomy of a Data Breach

Data breaches can wreak havoc on your company and almost always lead to litigation. With each new breach, we gain valuable insight into what companies could have done better. Your legal, contractual, and business obligations can sometimes be confusing and in conflict with each other.

Why it Matters: During the April Business Education Series facilitated by Nate Steed and Kelly R. Hollingsworth, this session will examine recent cases and best practices to protect your company from a breach including: lessons learned from recent data breaches; proactive strategies to insulate your business. Learn more.

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  1. Elizabeth M. Siefker Selected as a Member of Michigan Lawyers Weekly “Up & Coming Lawyers Class of 2025”

Fraser Trebilcock attorney ​Elizabeth M. Siefker has been selected as a member of Michigan Lawyers Weekly’s “Up & Coming Lawy​ers Class of 2025.” This special award recognizes those who have excelled in the profession and are standouts among their peers — all in their first 10 years of practice.

Why it Matters: Ms. Siefker focuses her practice on estate planning, elder law, guardianships and conservatorships, probate litigation, and tax planning. With experience assisting clients in every aspect of the estate planning process, she understands that each plan will be unique to the client’s situation. Ms. Siefker is included in Super Lawyers® as a “Michigan Rising Star” in Estate & Probate, and received the American Jurisprudence Award for civil procedure, contracts, first amendment, and torts. She is an active member of several legal organizations, having previously served on the Board of Directors of the Women Lawyers Association of Mid-Michigan as the Regional Representative. Read more.

Related Practice Groups and Professionals

Business & Tax | Robert D. Burgee
Intellectual Property | Andrew Martin
Cannabis Law | Sean Gallagher
Elizabeth Siefker

U.S. Court of Appeals Rules on AI-Generated Copyright Eligibility

There is a pending decision in the Colorado District Court on a case that will provide insight on the amount of artificial intelligence (AI) that makes a work ineligible. Stay tuned for more updates as we await the ruling. 

On March 18, 2025, the U.S. Court of Appeals for the District of Columbia Circuit issued a decision for Thaler v. Perlmutter, which addressed whether a work created autonomously by artificial intelligence (AI) is eligible for copyright protection.

Background

Dr. Stephen Thaler developed an AI system known as the “Creativity Machine,” which produced an artwork titled “A Recent Entrance to Paradise.” He applied for copyright registration in 2018 identifying the author of the images as the “Creativity Machine,” with Thaler listed as the claimant with a transfer statement: “ownership of the machine.” In his application, Thaler stated that the work “was autonomously created by a computer algorithm running on a machine” and he was “seeking to register this computer-generated work as a work-for-hire to the owner of the Creativity Machine.” The U.S. Copyright Office denied the application, citing the necessity of human authorship for copyright eligibility.

Dr. Thaler challenged this decision, arguing that the human authorship requirement was unconstitutional and unsupported by statute or case law. The district court upheld the Copyright Office’s denial, emphasizing that human authorship is a fundamental requirement under the Copyright Act. The court referenced the U.S. Supreme Court’s 1884 decision in Burrow-Giles Lithographic Co. v. Sarony, which upheld the copyrightability of a photograph due to the human creator’s conception and design of the image.

On appeal, the D.C. Circuit affirmed the lower court’s ruling, reiterating that the Copyright Act necessitates human authorship for a work to be eligible for copyright protection. The court noted that while AI-assisted works may be considered for copyright if a human provides creative input or intervention, works generated entirely by non-human entities without human involvement do not qualify. The court did not address the constitutionality of the human authorship requirement, as it was unnecessary for the decision.

What This Means

The outcome of this case is not surprising. It is well settled law that non-human authorship is not recognized by the US Copyright Act. see Naruto v Slater, 888 F3d 418 (CA 9, 2018) (9th Circuit Court of Appeals holding that a monkey cannot be an “author”). However, it should be noted that this opinion only addressed whether a machine with no human intervention could be considered an author of a work. The Court clarified that amount of human intervention for AI created works was not at issue in this case stating, “[t]hose line-drawing disagreements over how much artificial intelligence contributed to a particular human author’s work are neither here nor there in this case. That is because Dr. Thaler listed the Creativity Machine as the sole author of the work before us, and it is undeniably a machine, not a human being.”

This case reaffirms the prevailing legal principle that copyright protection is reserved for works created by humans. As AI continues to evolve, questions about the extent of human involvement necessary for copyright eligibility remain open for future consideration.​ Indeed, the question will be directly addressed in the upcoming case in Allen v. Perlmutter in the District Court of Colorado. Fraser attorneys will continue to monitor any developments and update our clients.


This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions. When it matters in Michigan, we are the trusted legal advisors for businesses and individuals.


Andrew G. Martin is an experienced registered patent attorney with history working in the automotive, electrical, and agricultural industries. He regularly advises startups and small businesses on the patent and trademark prosecution process, assisting clients from start to finish. You can reach him at 517.377.0834 or at amartin@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – February 14, 2025

  1. Large Michigan Cannabis Operator Temporarily Shutters Part of its Operations Due to Market Challenges

Pincanna, which has retail cannabis outlets in East Lansing, Kalamazoo, and Kalkaska, recently announced that it is temporarily closing the greenhouse portion of its cultivation operation (located in Bay County) and laying off part of its workforce.

Why it Matters: One of the company’s co-founders cited an oversupply of cannabis in Michigan, which has created a highly competitive and unsustainable market, as the driving force behind the decision. Despite record sales of product, many Michigan cannabis operators have struggled to remain profitable due to falling prices.

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  1. Governor Whitmer Unveils Proposed Tax Increases to Fund Roads

This week, Governor Whitmer released a proposal that seeks $3 billion in a long-term plan that will lower vehicle repair costs, invest $1 billion in local roads and $250 million in transit.

Why it Matters: Among the components of the proposal, it seeks to close the gap in road funding, ensuring each dollar paid at the gas pump is invested back into the road infrastructure. Additionally will require businesses, specifically Big Tech, to pay more in taxes for doing business in Michigan, and to introduce a wholesale tax on the marijuana industry.

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  1. Latest Product Recall from Michigan CRA on Vapes Containing MCT Oil

On February 11, 2025, the Michigan Cannabis Regulatory Agency released a bulletin on a voluntary product recall on certain vapes from the brand BLOOM Classic and BLOOM Live that were found to contain Medium Chain Triglyceride (MCT) Oil, which had been banned for use in 2024.

Why it Matters: The products affected are from the brand Platinum Vapes. MCT Oil is commonly used in inhalable cannabis products, such as vapes, and may pose dangers to respiratory health when inhaled. The CRA banned the use of MCT Oil starting October 1, 2024.

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  1. U.S. Supreme Court’s Decision on TikTok

On January 17, 2025, the Supreme Court delivered a landmark decision in TikTok Inc. v. Garland, upholding the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act. TikTok argued that the law infringed upon its First Amendment rights, claiming that it was being unfairly targeted as a foreign adversary-controlled application and that the divestiture requirement placed an unconstitutional burden on free speech. However, the Supreme Court disagreed, ultimately finding that the Act was a content-neutral law that was not in violation of the First Amendment.

Why it Matters: This Supreme Court decision marks a pivotal moment in the ongoing struggle between the protection of technology-based free speech and national security concerns. When or if Congress considers applying the Act’s prohibitions to other social media platforms, how the Court addresses the constitutionality of those future challenges will be crucial to watch. Read more.

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  1. Business Education Series: Anatomy of a Data Breach

Data breaches can wreak havoc on your company and almost always lead to litigation. With each new breach, we gain valuable insight into what companies could have done better. Your legal, contractual, and business obligations can sometimes be confusing and in conflict with each other.

Why it Matters: During the March Business Education Series facilitated by Nate Steed and Kelly R. Hollingsworth, this session will examine recent cases and best practices to protect your company from a breach including: lessons learned from recent data breaches; proactive strategies to insulate your business. Learn more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin

Five Stories That Matter in Michigan This Week – February 7, 2025

  1. Update: FinCEN – Supreme Court – CTA Injunction

FinCEN has given notice of its appeal in the Smith case: the lawsuit that led to the current nationwide injunction that makes Beneficial Ownership Information (BOI) reporting voluntary under the Corporate Transparency Act (CTA). If the court grants FinCEN’s appeal and lifts the injunction, BOI reporting would again become mandatory.

Why it Matters: In that event, the government has informed the court that FinCEN plans to implement a 30-day filing extension and “assess whether it is appropriate to modify the CTA’s reporting requirements to alleviate the burden on low-risk entities.” Read more.

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  1. Michigan Cannabis Grower Wins $32M Verdict in Contract Dispute

A federal court jury awarded Michigan-based Hello Farms $32 million last week after finding that Curaleaf, a large cannabis company, breached its purchase agreement from 2020-2021. The dispute arose when Curaleaf, after purchasing only 2,000 of the contracted 16,000 pounds of cannabis, demanded to renegotiate the agreement due to rapidly falling market prices.

Why it Matters: This case highlights the significant challenges facing Michigan’s cannabis industry as it grapples with volatile market conditions and plummeting prices. Particularly for those operating under long-term purchase agreements, this verdict underscores the importance of carefully considering the various business and legal risks of making significant purchase production commitments in an unstable market environment. It’s crucial to seek out experienced legal counsel in such situations.

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  1. U.S. Supreme Court’s Decision on TikTok

On January 17, 2025, the Supreme Court delivered a landmark decision in TikTok Inc. v. Garland, upholding the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act. TikTok argued that the law infringed upon its First Amendment rights, claiming that it was being unfairly targeted as a foreign adversary-controlled application and that the divestiture requirement placed an unconstitutional burden on free speech. However, the Supreme Court disagreed, ultimately finding that the Act was a content-neutral law that was not in violation of the First Amendment.

Why it Matters: This Supreme Court decision marks a pivotal moment in the ongoing struggle between the protection of technology-based free speech and national security concerns. When or if Congress considers applying the Act’s prohibitions to other social media platforms, how the Court addresses the constitutionality of those future challenges will be crucial to watch. Read more.

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  1. Michigan CRA Issues Product Recall on Vapes Due to MCT Oil

The Michigan Cannabis Regulatory Agency recently released a bulletin on a voluntary product recall on certain vapes that were found to contain Medium Chain Triglyceride (MCT) Oil, which had been banned for use in 2024.

Why it Matters: The products affected are from the brand Platinum Vapes. MCT Oil is commonly used in inhalable cannabis products, such as vapes, and may pose dangers to respiratory health when inhaled. The CRA banned the use of MCT Oil starting October 1, 2024.

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  1. Business Education Series: Anatomy of a Data Breach

Data breaches can wreak havoc on your company and almost always lead to litigation. With each new breach, we gain valuable insight into what companies could have done better. Your legal, contractual, and business obligations can sometimes be confusing and in conflict with each other.

Why it Matters: During the March Business Education Series facilitated by Nate Steed and Kelly R. Hollingsworth, this session will examine recent cases and best practices to protect your company from a breach including: lessons learned from recent data breaches; proactive strategies to insulate your business. Learn more.

Related Practice Groups and Professionals

Business & Tax | Robert D. Burgee
Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin

Five Stories That Matter in Michigan This Week – December 20, 2024

  1. Court Blocks DOL’s FLSA Salary Threshold Increases Nationwide

A federal district court in Texas recently struck down the Department of Labor’s planned increases to minimum salary requirements for overtime-exempt employees under the FLSA. The ruling invalidates both the July 2024 increase to $43,888 annually and the planned January 2025 increase to $58,656, reverting the federal threshold back to $35,568 per year for employers nationwide.

Why it Matters: The ruling means the lower $35,568 annual salary threshold for determining overtime exemptions for white-collar workers under federal law is again applicable (at least for the time-being). However, employers should continue to monitor potential appeals or new federal rulemaking on this issue.

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  1. Intellectual Property and Rebranding: What Business Leaders Need to Know

After you’ve launched your brand, your work isn’t over yet. Now comes the ongoing task of protecting your new brand. First and foremost, you need to monitor the marketplace. Keep an eye out for any businesses using names, logos, or other branding elements that are similar to yours. The earlier you catch potential infringement, the easier it is to address.

Why it Matters: But protection isn’t just about policing others—it’s also about maintaining your own rights. For example, use your trademarks consistently and properly. If you’ve registered a logo, make sure you’re using it in the form in which it was registered. Keep records of how and when you use your trademarks in commerce. Be proactive and make IP an important strategic consideration for your business. Read more.

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  1. Fraser Trebilcock Announces 2025 Board of Directors

The Shareholders of Fraser Trebilcock, one of Michigan’s long-established full-service law firms, have re-elected Thaddeus E. Morgan as President of the firm. Shareholder Ryan K. Kauffman was re-elected to the Board of Directors, where he will serve as Vice President & Treasurer. Shareholder Jared A. Roberts was elected to the Board of Directors, where he will serve as Secretary.

Why it Matters: When it matters in Michigan, we are the trusted advisor for businesses and individuals requiring planning and consulting services, or facing legal and regulatory challenges, and our capabilities extend to wherever clients require counsel. The annual election of the Board of Directors allows Fraser Trebilcock to continue its tradition of exceptional client service, dedicated community involvement and professional excellence. Read more.

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  1. Michigan CRA Publishes November ’24 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sale of an ounce of cannabis in November was $71.80, a decrease from $73.99 in October. This is a decrease from November 2023, where the average price was $97.51.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. FinCEN Motion to Stay

On Wednesday, December 11, 2024, FinCEN filed its first substantive response to the nationwide injunction ordered by a United States District Court in Texas. The response, a “Motion to Stay Preliminary Injunction Pending Appeal” highlights the time and expense incurred by government in implementing the CTA, including the build out of the online reporting system, community outreach events, and an ad buy in excess of $4.3 million.

Why it Matters: Businesses and other would-be reporting companies are advised to keep a close eye on these proceedings, as the reporting requirements could be revived and enforcement resumed effective January 1, 2025. If that happens, it could be quite a scramble for the 20+ million reporting companies. Accordingly, FinCEN advises that online the reporting system remains open for “voluntarily” filings. Read more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Intellectual Property | Andrew Martin
Cannabis Law | Sean Gallagher
Business & Tax | Robert D. Burgee