Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 63

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 63
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 short in inventory, we can place purchase order to other suppliers without difficulty and price premium.

Intellectual Property

We regard our trademarks, domain names, know-how,
proprietary technologies and similar intellectual property as critical to our success, and we rely on trademark and trade secret law and
confidentiality and invention assignment with our employees and others to protect our proprietary rights.

We mostly rely on our know-how for production processes. Currently, Bamberg (HK) Limited has one registered trademark for Bamberg in the U. S. and one registered
trademark for Bamberg in Hong Kong, which are utilized for our self-branded products, and the Company has one trademark of ILAG in Hong
Kong as our group holding company logo for our general company image and marketing purpose. In addition, we and our subsidiaries have
three registered domain names in Hong Kong, namely i-l-a-g. com, kambo. com. hkand bamberggroup. com.

Despite our efforts to protect our proprietary rights,
unauthorized parties may attempt to copy or otherwise obtain and use our intellectual properties. Monitoring unauthorized use of our intellectual
properties is difficult and costly, and we cannot be certain that the steps we have taken will prevent misappropriation of our intellectual
properties. From time to time, we may have to resort to litigation to enforce our intellectual property rights, which could result in
substantial costs and diversion of our resources.

In addition, third parties may initiate litigation
against us alleging infringement of their proprietary rights or declaring their non-infringement of our intellectual property rights.
In the event of a successful claim of infringement and our failure or inability to develop non-infringing technology or license the infringed
or similar technology on a timely basis, our business could be harmed. Moreover, even if we are able to license the infringed or similar
technology, license fees could be substantial and may adversely affect our results of operations.

See“ Risk Factors - Risks Related to
Our Business - We may not be able to prevent others from unauthorized use of our intellectual property, which could harm our business
and competitive position.” and “ - We may be subject to intellectual property infringement claims, which may be expensive
to defend and may disrupt our business and operations.”

  41  

Competition

We face competition from worldwide brands such
as Kwiksets, Schlage, and other domestic manufacturers in Hong Kong and China. The Company positions its products as affordable high-quality
mechanical Grade 2 and Grade 3