I myself know next to nothing about branding and the laws surrounding it but to me it would be oh so much simpler for CVSI to come up with another name than have to arm wrestle somebody else over the name of New Harvest.
That being said, I cannot help wonder if what you suggest about a co-branding relationship might be true? I mean, why bother with the name New Harvest if you know in advance there is going to be an issue with using it.. unless you know in advance that there isn't.