Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 38

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 38
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 been developed as per the specifications
provided and is free from any patent defects and services will be provided with reasonable care.

In the case of any breach of these
representations and warranties, we would be required to take certain remedial steps, including: modifying the solution, defending our
subscribers in any litigation arising from an intellectual property rights infringement claim by a third-party, providing functionally
equivalent replacements to the subscribers, rectifying the defect and indemnifying our subscribers for any direct losses arising from
such a breach of representations and warranties.

Such steps may involve significant
monetary costs and management time. Any inability to predict our performance and measure our productivity would further compound these
risks and expose us to additional liabilities. Our subscribers could seek significant compensation from us for the losses they suffer.
Although our subscription agreements typically contain provisions designed to limit our exposure to product liability claims, existing
or future laws or unfavorable judicial decisions could negate these limitations. Even if not successful, a product liability claim brought
against us would likely be time-consuming, costly and could seriously damage our reputation in the marketplace, making it harder for us
to sell our solutions.

An assertion by a third
party that we are infringing on its intellectual property could subject us to costly and time-consuming litigation or expensive licenses
and our business could be harmed.

The industries in which we operate
are characterized by the existence of entities, including leading companies, competitors, patent holding companies and non-practicing
entities that hold a large number of patents, copyrights, trademarks and trade secrets. Further, the industries are characterized by frequent
litigation based on allegations of infringement or other violations of intellectual property rights. Such entities may assert patent,
copyright, trademark or other intellectual property claims against us, our customers and partners, and those from whom we license technology
and intellectual property. Much of this litigation involves patent holding companies or other adverse patent owners who have no relevant
product revenues of their own. We do not have a patent portfolio of our own and even if we did, a patent portfolio may provide little
or no deterrence to such patent holding companies or non-practicing entities.

Legal proceedings involving intellectual
property rights are highly uncertain, and can involve complex legal and scientific questions. We cannot assure you that we will prevail
in any current or future intellectual property infringement or other litigation given the complex technical issues and inherent uncertainties
in such litigation. Defending such claims, regardless of their merit, could be time-consuming and distracting to management, result in