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Marijuana Vending Patent Controversy: Medbox, Inc. Files Suit Against Makers of 'Autospense'

Medbox Vs AutospenseHOLLYWOOD, Calif. — Medbox Inc. (Pinksheets: MDBX) the publicly listed company has issued a cease and desist letter to a company claiming credit for Medbox' development.

Dispense Labs, LLC, earlier claimed that it was the first company to have produced a machine that dispenses medical marijuana. This company, which is connected to a medical marijuana dispensary dubbed “The Dispensary Store,” went on to be featured in several news appearances touting the benefits of its proprietary invention.

Simultaneously, Santa Ana authorities shut down The Dispensary Store which it deemed was illegally operating. The Santa Ana Police reiterated the fact that there is a complete ban on medical marijuana dispensaries within city limits due to the city's municipal code.

After its appearance in the news, Medbox Inc. served Dispense Labs LLC, with a letter asking it to cease and desist from its invention claims regarding its medical marijuana dispensing machine. Medbox' cease and desist letter references the patent the company got for its own medical marijuana dispensing machine. The US Patent and Trade Office awarded the federal patent (7,844,363 B1) to Medbox, Inc. over five years ago. The letter reminded Dispense Labs LLC of the penalties for criminal patent infringement which is imprisonment from one to up to ten years and fines. In addition to Dispense Labs LLC, the cease and desist notice named its CEO and founder Joe DeRobbio and The Dispensary Store.

"They say imitation is the sincerest form of flattery, but when a patent is involved it's just plain criminal," stated Dr. Bruce Bedrick, CEO of Medbox, Inc. "Our company's founder developed this technology years ago for use in the medical marijuana industry as a compliance tool. Dispense Labs has misled the media into the false belief that this is a new concept Dispense Labs created."

For its part, Medbox' subsidiary companies have appeared in more than thirty news features since 2007. These news features focused on the Medbox dispensing machine's positive impact on the medical cannabis industry. Medbox issued the cease and desist notice because it believed that the actions of Dispense Labs we're damaging the public image of its automated medical marijuana dispensing machine technology. Medbox stated it has spent the previous three years and several hundred thousand dollars on lobbyists operating in many states to facilitate the proper legal and political climate for the machine's adoption in those states. As of this writing, Medbox technology has been implemented and is currently operating in many medical marijuana dispensaries across the nation. Furthermore, Medbox' technology was the recipient of an endorsement in Colorado's HB1043 medical marijuana bill.

The company says it plans to prosecute its patent infringement claim to the fullest extent of the law.

View the Patent: N0.: US 7844363 B1: Vending Machine Apparatus to dispense herbal medications

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