Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 70

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 70
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 the VIE’s ability to make, use or sell its products in China. The validity
and scope of claims relating to internet ecosystem technology patents involve complex scientific, legal and factual questions and analysis
and, as a result, may be highly uncertain. In addition, the defense of intellectual property suits, including patent infringement suits,
and related legal and administrative proceedings can be both costly and time consuming and may significantly divert the efforts and resources
of the VIE’s technical and management personnel. Furthermore, an adverse determination in any such litigation or proceedings to
which the VIE may become a party could cause it to:

| · | pay damage awards;                |
| · | seek licenses from third parties; |
| · | pay ongoing royalties;            |
| · | redesign products; or             |
| · | be restricted by injunctions,     |

each of which could effectively prevent the VIE
from pursuing some or all of its business and result in its distributors or potential distributors deferring or limiting their purchase
or use of the VIE’s products, which could have a material adverse effect on our financial condition and results of operations.

In addition, the VIE
currently holds two patents which were acquired through assignment from the transferor, Xin Jianfang. Since the transfer agreements for
these aforementioned two patents have been lost, however, we cannot provide assurance that such transfers are valid or will be considered
legally binding, and this may expose us to litigation risk. We do not consider these two patents to be our core patents.

The VIE may not be able to prevent others from unauthorized use of its intellectual property, which could harm its business and competitive position.

The VIE relies on a combination
of trademark, fair trade practice, patent, copyright and trade secret protection laws in China, as well as confidentiality procedures
and contractual provisions, to protect its intellectual property rights. The VIE intends to enter into confidentiality agreements with
its employees that include terms identifying all employee-developed intellectual property as service inventions belonging to the VIE.
In addition, the VIE strives to remain current in its annual patent fee payments. The VIE regards its trademarks, patents, know-how, proprietary
technologies, and similar intellectual property as critical to its success. The VIE may become an attractive target to intellectual property
attacks in the future with the increasing recognition of its brand. Any of the VIE’s intellectual property rights could be challenged,
invalidated, circumvented or misappropriated, or such intellectual property may not be sufficient