On December 18, 2025, President Trump ordered that cannabis will be rescheduled from Schedule I to Schedule III under the Controlled Substances Act. Today, the federal government has finally taken action on cannabis rescheduling. After months of delay, the United States Department of Justice has moved certain state-licensed medical cannabis products out of Schedule I and into Schedule III.
This marks the first meaningful federal shift in decades. But for federal trademark purposes, the impact is far narrower than the headlines suggest.
A Limited Move to Schedule III
On April 23, 2026, the Department of Justice reclassified certain cannabis products, including FDA-approved cannabis-derived drugs and state-regulated medical marijuana, as Schedule III substances under the Controlled Substances Act.
This change recognizes that cannabis has accepted medical use and a lower potential for abuse than Schedule I substances. It also removes qualifying businesses from the reach of Internal Revenue Code Section 280E, allowing standard business deductions.
However, this does not amount to full rescheduling. Recreational cannabis will remain illegal under federal law, and most cannabis products will continue to fall within Schedule I.
A Fragmented Federal Framework
As a result, the federal government now operates under a split system.
Certain cannabis products that meet defined medical and regulatory criteria will fall within Schedule III. All other cannabis products will remain subject to Schedule I restrictions. The Department of Justice has indicated that broader rescheduling remains under review, meaning this development is part of an ongoing process rather than a final resolution.
This fragmented approach creates a more complex legal landscape. It distinguishes between categories of cannabis for the first time, but it does not create a fully lawful national market.
Federal Trademark Rights Still Depend on Lawful Use
Federal trademark protection still turns on a single rule–lawful use in commerce.
The United States Patent and Trademark Office will continue to refuse trademark applications for goods that violate federal law. Because most cannabis products remain federally unlawful, those applications will still be rejected.
This means that common cannabis products such as flower, edibles, and vape products will likely remain ineligible for federal trademark protection.
A Narrow Opening for Certain Cannabis Products
This development does create a limited opening.
For the first time, certain cannabis-related goods may qualify as lawful under federal law. FDA-approved cannabis-derived drugs and tightly regulated medical products may now qualify for federal trademark protection if they comply with all applicable federal requirements.
That shift is real, but it applies to a narrow segment of the industry. Most cannabis businesses operating in state markets will likely not benefit from this change.
Schedule III Does Not Equal Legalization
Schedule III status does not legalize cannabis. It simply places certain products into a different regulatory category at the federal level.
Schedule III substances remain controlled drugs. They are subject to federal oversight, including requirements imposed by the Food and Drug Administration and the Drug Enforcement Administration. They are not freely sold in interstate commerce.
For trademark purposes, this distinction is critical. The issue is not how cannabis is classified, but whether the specific goods are lawful under federal law. In most cases, they are not.
Patent Protection Remains Unaffected
It is also worth noting that this development does not change the availability of patent protection for cannabis-related inventions. Unlike trademarks, patents do not require lawful use in commerce. As a result, cannabis products, formulations, devices, and methods have long been eligible for patent protection, even while cannabis remained a Schedule I substance.
The United States Patent and Trademark Office continues to examine cannabis-related patent applications under the same standards of novelty, nonobviousness, written description, and enablement. This means that, while federal trademark rights remain limited, patent protection continues to offer a viable and often critical form of intellectual property protection in the cannabis industry.
The Bottom Line
This is the most significant federal cannabis development in years. It reflects a shift in how the federal government views cannabis, particularly in the medical context.
At the same time, today’s order does not fundamentally change the federal patent and trademark landscape.
Federal trademark protection for cannabis goods remains largely unavailable. The lawful use requirement will continue to block registration for most cannabis products currently sold in state markets.
The true inflection point will likely come if and when the federal government completes full rescheduling or establishes a lawful framework for interstate cannabis commerce. The USPTO will likely wait until such a framework is implemented.
Until then, cannabis intellectual property strategy remains constrained by federal law, and businesses must continue to navigate that reality carefully.