Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 76

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 76
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 we could face an injunction barring us from conducting the allegedly infringing
activity. The outcome of the litigation could require us to enter into a license agreement that may not be acceptable, commercially reasonable,
or on practical terms, or we may be precluded from obtaining a license at all. It is also possible that an adverse finding of infringement
against us may require us to dedicate substantial resources and time to developing non-infringing alternatives, which may or may not be
possible.

Finally, we may initiate claims to assert or defend
our own intellectual property against third parties. Any intellectual property litigation, irrespective of whether we are the plaintiff
or the defendant, and regardless of the outcome, is expensive and time-consuming, and could divert our management’s attention from
our business and negatively affect our operating results or financial condition.

We may be subject to claims by third parties asserting that our employees or we have misappropriated our intellectual property, or claiming ownership of what we regard as our own intellectual property.

Although we try to ensure that we and our employees
and independent contractors do not use the proprietary information or know-how of others in their work for us, we may be subject to claims
that we or our employees or independent contractors have used or disclosed intellectual property in violation of others’ rights.
These claims may cover a range of matters, such as challenges to our trademarks, as well as claims that our employees or independent contractors
are using trade secrets or other proprietary information of any such employee’s former employer or independent contractors. As a
result, we may be forced to bring claims against third parties, or defend claims they may bring against us, to determine the ownership
of what we regard as our intellectual property. If we fail in prosecuting or defending any such claims, in addition to paying monetary
damages, we may lose valuable intellectual property rights or personnel. Even if we are successful in prosecuting or defending against
such claims, litigation could result in substantial costs and be a distraction to management.

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Our new Salute Series lines of spirits may be subject to claims of misuse or unapproved use of certain imagery or terms associated with the U.S. military or first responders. We may come under attack for not having authentic military or first responder roots for a particular line or design under this product line.

Although we try to ensure that we do not infringe
on any third-party trademark, or use unapproved logos or images in our marketing, certain branches of the U.S. military or first responders