Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 204

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 204
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, certain laws have recently been enacted seeking to hold marketplaces like ours responsible
for certain compliance obligations for which sellers have traditionally been responsible. If an increasing number of such laws are passed,
the resulting compliance costs and potential liability risk could negatively impact our business.

 21 

We may be subject to intellectual property claims,
which, even if untrue, could be extremely costly to defend, damage our brand, require us to pay significant damages, and limit our ability
to use certain technologies in the future.

Companies on the internet and technology industries
are frequently subject to litigation based on allegations of infringement or other violations of intellectual property rights. We periodically
receive communications that claim we have infringed, misappropriated, or misused others’ intellectual property rights. To the extent
we gain greater public recognition and scale worldwide, we may face a higher risk of being the subject of intellectual property claims.
Third parties may have intellectual property rights that they claim cover significant aspects of our technologies or business methods
and prevent us from expanding our offerings. Third parties may also allege a company is secondarily liable for intellectual property infringement,
or that it is a joint infringer with another party, including claims that KwikClick is liable, either directly, indirectly, or vicariously,
for infringement claims against sellers using KWIKClick’s platform, our vendors, or other third parties, and that statutory, judicial,
or other immunities and defenses do not protect us. Any intellectual property claims against us, with or without merit, could be time
consuming and expensive to settle or litigate and could divert the attention of our management. Litigation regarding intellectual property
rights is inherently uncertain due to the complex issues involved, and we may not be successful in defending ourselves in such matters.
For claims against us, insurance may be insufficient or unavailable, and for claims related to actions of third parties, either indemnification
or remedies against those parties may be insufficient or unavailable.

Some of our competitors have extensive portfolios
of issued patents. Many potential litigants, including some of our competitors, patent holding companies, and other intellectual property
rights holders, have the ability to dedicate substantial resources to enforcing their perceived intellectual property rights. Any claims
successfully brought directly against us or implicating us as part of an action against third parties, such as our sellers or vendors,
could subject us to significant liability for damages, and we may be required to stop using technology or other intellectual property
alleged to be in violation of a third-party’s rights in one or