Company: PAVS
Filing Date: 2025-08-04
Form Type: 20-F
Source: 0001929980-25-000590
Chunk: 73

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-08-04
Form: 20-F
Item: Item 4
Chunk 73
---
 as well as for ensuring the accuracy of information disclosed to consumers. Failure to comply may result in suspension from the platform or civil penalties.

  39                 
  Table of Contents  

Moreover, BW’s live-streaming and marketing operations require careful adherence to intellectual property laws, including the Copyright Act of 1976, the Digital Millennium Copyright Act (DMCA), and the Lanham Act. These laws regulate BW’s use of third-party music, video content, logos, trademarks, and other protected intellectual property during live-streamed events. Unauthorized use of such materials may result in takedown notices, financial liability, platform penalties, or reputational damage. In particular, BW may face liability under trademark law if it is alleged to have used another party’s brand name, logo, or trade dress in a misleading or unauthorized manner.

BW’s operations are also governed by laws and regulations specific to the product categories we offer for sale, including leather goods and sportswear. For example, the FTC’s Textile and Wool Acts require accurate labeling of fiber content, country of origin, and care instructions for apparel and textile items. Leather products are also subject to labeling standards that prohibit misrepresentation of material content, such as using the terms “genuine leather” or “full-grain” without meeting established definitions and industry norms. In addition, BW may be subject to safety regulations enforced by the Consumer Product Safety Commission (CPSC), especially when its products involve materials, components, or design elements that could present risks related to flammability, chemical exposure, or choking hazards.

As an online retailer that sources products from wholesalers, manufacturers, or other sellers, we must also consider potential exposure to intermediary liability - legal responsibility that can arise when a seller facilitates the sale of goods that are defective, mislabeled, counterfeit, or otherwise non-compliant with applicable law. Although primary liability may rest with the original manufacturer or importer, U. S. law permits enforcement actions and private claims to be brought against downstream sellers in certain situations.

Additionally, BW is subject to a complex framework of state and local sales and use tax laws that govern our sale of goods via live-stream and e-commerce platforms. Following the U. S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., states may impose sales tax obligations on remote sellers, including those without a physical presence in the state, once certain economic nexus thresholds are met. In many states, “marketplace facilitator” statutes have shifted the obligation to collect and remit taxes to platforms such as TikTok