Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 39

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 39
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costly litigation or settlement, cause development delays, or require us to enter into royalty or licensing agreements. Insurance may
not cover or be insufficient for any such claim. In addition, we could be obligated to indemnify our customers against third parties’
claims of intellectual property infringement based on our solutions. If our solutions violate any third-party intellectual property rights,
we could be required to withdraw those solutions from the market, re-develop those solutions or seek to obtain licenses from third parties,
which might not be available on reasonable terms or at all. Any efforts to re-develop our solutions, obtain licenses from third parties
on favorable terms or license a substitute technology might not be successful and, in any case, might substantially increase our costs
and harm our business, financial condition and results of operations. Withdrawal of any of our solutions from the market could also harm
our business, financial condition and results of operations. Further, we may not have the ability to terminate or amend our supplier contracts
in connection with such solutions being withdrawn from the market, nor may we have recourse through representations, warranties, indemnification
provisions or otherwise in such supplier contracts.

In addition, we incorporate open-source
software into our platform. Given the nature of open-source software, third parties might assert copyright and other intellectual property
infringement claims against us based on our use of certain open-source software programs, particularly in the United States. The terms
of many open-source licenses to which we are subject have not been interpreted by U. S. courts or courts of other jurisdictions, and there
is a risk that those licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to commercialize
our solutions. In that event, we could be required to seek licenses from third parties in order to continue offering our solutions, to
re-develop our solutions, to discontinue sales of our solutions, or to release our proprietary software source code under the terms of
an open-source license, any of which could have a material adverse effect on our business.

If we are unable to protect our
intellectual property and proprietary technologies, our business may be adversely affected.

Our future success and competitive
position depend in large part on our ability to protect our intellectual property and proprietary technologies. We rely on a combination
of trademark, copyright, and trade secret laws, as well as confidentiality procedures and contractual restrictions, to establish and protect
our intellectual property rights, all of which provide only limited protection and may not currently or in the future provide