Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2622

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2622
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 business.

In
connection with our efforts to expand our pipeline of product candidates, we have entered into and may enter into certain licenses, sublicenses
or other collaboration agreements in the future pertaining to the in-license of rights to additional candidates. Such agreements impose
various diligence, milestone payment, royalty, insurance or other obligations on us. If we fail to comply with these obligations, our
licensor or collaboration partners may have the right to terminate the relevant agreement, in which event we would not be able to develop
or market the products covered by such licensed or sublicensed intellectual property.

Moreover,
disputes may arise regarding intellectual property subject to a licensing agreement, including:

    ●
    the
    scope of rights granted under the license or sublicense agreement and other interpretation-related issues;

    ●
    the
    extent to which our product candidates, technology and processes infringe on intellectual property of the licensor that is not subject
    to the licensing agreement;

98

    ●
    the
    sublicensing of patent and other rights under our collaborative development relationships;

    ●
    our
    diligence obligations under the license or sublicense agreement and what activities satisfy those diligence obligations;

    ●
    the
    inventorship and ownership of inventions and know-how resulting from the joint creation or use of intellectual property by our licensors
    and us and our partners; and

    ●
    the
    priority of invention of patented technology.

We
are currently party to various sublicense agreements that we depend on to operate our business, and our rights to use currently licensed
intellectual property are subject to the continuation of and our compliance with the terms of these agreements. In spite of our efforts,
our sublicensors might conclude that we have materially breached our obligations under such sublicense agreements and might therefore
terminate the sublicense agreements, thereby removing or limiting our ability to develop and commercialize products and technology covered
by such agreements. In the event that we breach any of our sublicense agreements, or if any of the parties from whom we have sublicensed
intellectual property breach the underlying license agreements, we may not be entitled to the intellectual property that we sublicense.
Moreover, in the event that our sublicensors terminate such agreements, we may be unable to successfully prove that we have not materially
breached our obligations if we disagree with the assertion, and we may be required to expend significant resources to protect our rights
to the intellectual property even if our efforts to do so are ultimately unsuccessful.

In
addition, the agreements under