Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 44

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 1A
Chunk 44
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 potential adoption and expansion of trade restrictions or export controls, particularly with respect to China, may impact overall customer demand for our products or affect our ability to manufacture and/or sell our products overseas.  Additionally, in response to Russia’s invasion of Ukraine, the U.S. government has imposed numerous export controls and sanctions related to Russia.                Although we have had licenses in the past to export certain products and technologies, particularly to China, and we have historically had limited sales to companies in Russia, any alleged violation could expose us to significant cost, with any final determination of a violation of these export control regulations potentially resulting in monetary penalties and denial of export privileges.  Although we are not aware of any violation of any export control regulations, a failure to comply with any of these regulations could have an adverse effect on our business.              Further, we are subject to the risk of illicit diversion of our products to unauthorized end-users, such as sanctioned entities in Russia and/or China, who may use the products for purposes for which they are not intended, which could expose the Company to significant regulatory penalties, reputational harm, and termination of key supplier and/or distributor relationships, which may materially and adversely affect our business operations and financial condition.

Potential intellectual property claims and litigation could subject us to significant liability for damages and could invalidate our proprietary rights.

              The IC industry is characterized by frequent litigation regarding patent and other intellectual property rights.  We may find it necessary to initiate lawsuits to assert our patent or other intellectual property rights.  These legal proceedings could be expensive, take significant time, and divert management’s attention.  We cannot provide assurances that we will ultimately be successful in any lawsuit, nor can we provide assurances that any patent owned by us will not be invalidated, circumvented, or challenged.  We cannot provide assurances that rights granted under our patents will provide competitive advantages to us, or that any of our pending or future patent applications will be issued with the scope of the claims sought by us, if at all.              As is typical in the IC industry, our customers and we have, from time to time, received and may in the future receive, communications from third parties asserting patents, mask work rights, or copyrights.  In the event third parties were to make a valid intellectual property claim and a license was not available on commercially reasonable terms, our operating results could be harmed.  Litigation, which could result in substantial cost to us and diversion of our management, technical and financial resources, may also be necessary to defend us against claimed infringement of the rights