Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 70

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 70
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 sales, which may in turn lead to inventory
obsolescence, decline in inventory value or inventory write-off.

<div align='center'>39</div>

We may not be able to adequately protect our intellectual property, which could adversely affect our business and operations.

We regard our trademarks,
copyrights, domain names, know-how, patents, and similar intellectual property as critical to our success, and we rely on a combination
of intellectual property laws and contractual arrangements, including confidentiality and non-compete agreements with our employees and
others, to protect our proprietary rights As of December 31, 2024, we had registered 279 trademarks, 1 copyright of works and 5 computer
software copyrights in China, including three registered trademarks in Hong Kong. We may fail to own or apply for key trademarks in a
timely fashion, or at all. For example, several logos we have used for years cannot be registered as trademarks in certain trademark
categories in China because a company unaffiliated to us has pre-emptively registered similar logos as trademarks in such categories.
As a result, we have been and will not be able to use such logos in areas covered by such trademark categories. Such company complained
to the Market Supervision Bureau for the trademark infringement of DDC Shanghai, and DDC Shanghai has already applied for the invalidations
of these trademarks at the State Intellectual Property Office, or the SIPO, as well as indicted a series of related administrative actions
which have been already accepted by the court. As the trademarks under the legal proceeding are not relevant to our main business and
we have adopted timely steps to make enough adjustments to relevant business, including stopped using them in any public place, the unavailability
of these trademarks would not materially and adversely affect our business. If such third party actually use such trademarks in product
or service similar to us in the future, consumers may be confused and associate any quality issue on the products and services such third
party provides with us, which will have an adverse impact on our brand image. We may become an attractive target for certain copycat websites
that attempt to cause confusion or diversion of traffic from us in the future because of our brand recognition as a food-related content-driven
lifestyle brand in China. Despite these measures, any of our intellectual property rights could be challenged, invalidated, circumvented
or misappropriated, or such intellectual property may not be sufficient to provide us with competitive advantages. In addition, there
can be no assurance that (i) our