Company: FOXX
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006111
Chunk: 46

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 46
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 other violations of intellectual property rights may increase. Any claim of infringement, misappropriation or other violation of intellectual property rights by a third party, even those without merit, could cause us to incur substantial costs defending against the claim and could distract our management from our business. Future assertions of patent rights by third parties, and any resulting litigation, may involve patent holding companies or other adverse patent owners who have no relevant product revenues and against whom our own patents may therefore provide little or no deterrence or protection. There can be no assurance that we will not be found to infringe or otherwise violate any third -partyintellectual property rights or to have done so in the past. An adverse outcome of a dispute may require us to: •Pay substantial damages, including treble damages, if we are found to have willfully infringed a third party’s patents or copyrights •Make substantial payments for legal fees, settlement payments or other costs or damages; •Cease selling, making, licensing or using products that are alleged to infringe or misappropriate the intellectual property of others; •Expend additional development resources to attempt to redesign our products or otherwise develop non -infringingtechnology, which may not be successful; •Enter into potentially unfavorable royalty or license agreements to obtain the right to use necessary technologies or intellectual property rights; •Take legal action or initiate administrative proceedings to challenge the validity and scope of the third -partyrights or to defend against any allegations of infringement; and •Indemnify our partners and other third parties. In addition, royalty or licensing agreements, if required or desirable, may be unavailable on terms acceptable to us, or at all, and may require significant royalty payments and other expenditures. Some licenses may also be non -exclusive, and therefore our competitors may have access to the same technology licensed to us. Any of the foregoing events could seriously harm our business, financial condition, and results of operations. Even if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management and harm our business and operating results. Moreover, there could be public announcements of the results of hearings, motions or other interim proceedings or developments and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our Common Stock. We expect that the occurrence of infringement claims is likely to grow as the market for our products and solutions grows. Accordingly, our exposure to damages resulting from infringement claims could increase