--- title: Michigan Allows Uncapped Royalty Fees for Cannabis IP description: The Michigan Licensing and Regulatory Authority issued a statement informing medical marijuana facilities they may enter into licensing agreements for another company’s intellectual property including brands or recipes. The license agreement may include a royalty fee for each unit sold. Michigan’s approach is a bit hands-off compared to other states that view license agreements as a side door […] image: https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/68c301ebaa36be33aa2af8f7_1a3f16114a452999cc4d7d6b36ae1602_Obedio%20march%20of%20progress.png --- [Skip to content](https://hs.getobedio.com/blog/2019/03/25/2019-3-25-michigan-allows-uncapped-royalty-fees-for-cannabis-ip#main-content) [![Obedio logo with black text and an orange graphic composed of four circles and a diagonal arrow pointing up and right.](https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/66529844eddaa630d6da1b42_obedio%20gold%20for%20white%20background.png)](https://getobedio.com) [Team](https://www.getobedio.com/team) [Pricing](https://www.getobedio.com/pricing) [Contact](https://www.getobedio.com/demo) [Blog](https://www.getobedio.com/blog) [Login](https://obed.io/v4/login) ![](https://hs.getobedio.com/hs-fs/hubfs/Imported_Blog_Media/b8d88-hans-reniers-746177-unsplash.jpg?width=2500&height=1667&name=b8d88-hans-reniers-746177-unsplash.jpg) # Michigan Allows Uncapped Royalty Fees for Cannabis IP ![Susan Ameel](https://7528315.fs1.hubspotusercontent-na1.net/hub/7528315/hubfs/raw_assets/public/mV0_d-cms-elevate-theme_hubspot/elevate/images/avatar-placeholder.jpg?width=48&height=48&name=avatar-placeholder.jpg) Susan Ameel March 25, 2019 The Michigan Licensing and Regulatory Authority [issued a statement](https://www.michigan.gov/documents/lara/3-21-2019_Intellectual_Property__Brands_and_Recipes_650080_7.pdf)informing medical marijuana facilities they may enter into licensing agreements for another company’s intellectual property including brands or recipes. The license agreement may include a royalty fee for each unit sold. Michigan’s approach is a bit hands-off compared to other states that view license agreements as a side door approach to avoiding licensing requirements.  Washington State currently has a [bill](https://www.thcregs.com/news/2019/2/10/washington-bill-proposes-to-cap-royalty-fees-in-intellectual-property-contracts-to-10?rq=licensing%20agreement)that would place a 10% cap on licensing fees to prevent this risk. Parties entering into the licensing agreement should consider the impact of a a subsequent change in Michigan law. As Michigan’s regulatory framework matures, it too could decide to cap royalty fees in order to retain tighter control over licensees. ## Share this post [mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2F2019%2F03%2F25%2F2019-3-25-michigan-allows-uncapped-royalty-fees-for-cannabis-ip](mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2F2019%2F03%2F25%2F2019-3-25-michigan-allows-uncapped-royalty-fees-for-cannabis-ip) ## Keep reading ### [California Ballot Measure Local Municipalities California voters will decide 118 local tax measures and $8.07 billion in bond requests on November 3](https://hs.getobedio.com/blog/california-voters-will-decide-118-local-tax-measures-and-8.07-billion-in-bond-requests-on-november-3) ### [Local Ordinance Zoning Ordinance Development Data Federal Realty Asks La Mesa to Approve a 165,000-Square-Foot Bass Pro Shops Where Macy's Stood at Grossmont Center](https://hs.getobedio.com/blog/federal-realty-asks-la-mesa-to-approve-a-165000-square-foot-bass-pro-shops-where-macys-stood-at-grossmont-center) [![Obedio your municipal data source](https://hs.getobedio.com/hs-fs/hubfs/google%20workspace-1.png?width=100&height=41&name=google%20workspace-1.png "Obedio your municipal data source")](https://getobedio.com) Obedio's business intelligence platform provides data and insights from over 25,000 municipalities, enabling retail, manufacturing, finance, real estate, and government clients to make informed decisions, assess risk, and identify opportunities. **Data Source & Liability Disclaimer:** The data presented on this website is aggregated from various official government and public entities ("The Original Government Sources"). This data may have been modified for use from its original source. The Original Government Sources do not vouch for the quality, accuracy, or timeliness of the data as presented here. All data is provided "as is." Neither Global Regulatory Risk Advisors, Inc. (d/b/a Obedio) nor The Original Government Sources make any representations or warranties as to the completeness, accuracy, or content of any data made available through this site. All warranties, whether express or implied, including implied warranties of merchantability or fitness for a particular purpose, are expressly disclaimed. **Usage & Intellectual Property:** While the underlying facts are public records, the specific compilation, organization, and presentation of this information are proprietary to ****Global Regulatory Risk Advisors, Inc. (d/b/a Obedio)****. Any unauthorized copying, distribution, or display of this proprietary presentation is prohibited. Copyright © 2018–2026 Global Regulatory Risk Advisors, Inc. (d/b/a Obedio) [|](https://getobedio.com/privacy)[Terms of Service](https://getobedio.com/terms)[|](https://getobedio.com/privacy)[Privacy Policy](https://getobedio.com/privacy) Privacy Policy · Legal · © 2025. All rights reserved. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Susan Ameel", "url" : "https://hs.getobedio.com/blog/author/susan-ameel" }, "dateModified" : "2025-02-28T01:29:39.418Z", "datePublished" : "2019-03-25T22:33:11.000Z", "headline" : "Michigan Allows Uncapped Royalty Fees for Cannabis IP", "mainEntityOfPage" : { "@id" : "https://hs.getobedio.com/blog/2019/03/25/2019-3-25-michigan-allows-uncapped-royalty-fees-for-cannabis-ip", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://hs.getobedio.com/hubfs/google%20workspace-1.png" } } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://hs.getobedio.com/blog/2019/03/25/2019-3-25-michigan-allows-uncapped-royalty-fees-for-cannabis-ip#breadcrumb", "@type" : "BreadcrumbList", "itemListElement" : [ { "@type" : "ListItem", "item" : "https://www.getobedio.com/", "name" : "Home", "position" : 1 }, { "@type" : "ListItem", "item" : "https://hs.getobedio.com/blog", "name" : "Blog", "position" : 2 }, { "@type" : "ListItem", "item" : "https://hs.getobedio.com/blog/2019/03/25/2019-3-25-michigan-allows-uncapped-royalty-fees-for-cannabis-ip", "name" : "Michigan Allows Uncapped Royalty Fees for Cannabis IP", "position" : 3 } ] } ```