Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 35

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 35
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 for a number of marks and associated domain names. Such pending applications are not certain
to be approved, and even if we obtain approval for such pending applications, the resulting registrations may not adequately cover our
trademarks or protect us against infringement or dilution by others. Effective trademark, service mark, copyright, patent and trade secret
protection may not be available in every country or jurisdiction in which our products may be made available online, which may cause
our business and operating results to suffer. In addition, we may be unable to acquire or protect relevant domain names in the United
States and in other countries. If we are not able to acquire or protect our trademarks, domain names or other intellectual property,
we may experience difficulties in achieving and maintaining brand recognition and customer loyalty.

Assertions, claims and allegations, even
if not true, that we have infringed or violated intellectual property rights could harm our business and reputation.

Third parties have, and likely will in the future,
assert allegations and claims of intellectual property infringement against us on the items or their descriptions listed on our websites
and mobile apps. Any such claims, disputes or litigation, even if resolved in our favor or not true, could be time-consuming and costly
to defend, and could divert our management’s efforts from growing our business. We have intellectual property complaint and take-down
procedures in place to address communications alleging that items listed on online platforms, including the Newegg Marketplace, infringe
third-party copyrights, trademarks or other intellectual property rights. We follow these procedures to review complaints and relevant
facts to determine the appropriate action, which may include removal of the item from our online platforms and, in certain cases, discontinuing
our relationship with a Marketplace seller or brand partner who violates our policies. However, these rules and procedures may not effectively
reduce or eliminate our liability. In particular, Newegg may be subject to civil or criminal liability for activities carried out, including
products listed, by sellers or brands on our online platforms.

If any third parties prevail in their intellectual
property rights claims against Newegg, we may be required to pay significant licensing fees, damages and attorney’s fees, and may
even be liable for punitive damages if Newegg is found to have willfully infringed third parties’ proprietary rights. We may have
to stop using certain technology or solutions and need to develop or acquire alternative, non-infringing technology or solutions, which
could require significant time and resources. We could even be required to obtain a license to use certain technologies