Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 35

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 35
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 which may result in claims by or against us related to the ownership of such IP. We are not aware
of any threatened or pending claims that any of our projects involve misappropriated IP or other proprietary information, but in the future
litigation may be necessary to defend against such claims. If we fail in defending any such claims, in addition to paying monetary damages,
we may lose valuable IP rights. Even if we are successful in defending against such claims, litigation could result in substantial costs
and be a distraction to management.

We may be unable to execute on the optimal
development plan for one or more of our existing product candidates if we are unable to obtain or maintain necessary rights for some aspect
of the developing technology through acquisitions or licenses.

Our existing programs currently
use or may in the future use additional technologies subject to proprietary rights held by others, such as particular compositions or
methods of manufacture, treatment or use. The licensing and acquisition of IP rights is a competitive area, and more established companies
may pursue strategies to license or acquire such IP rights that we may consider necessary or useful. These established companies may have
a competitive advantage over us due to their size, cash resources and greater capabilities in clinical development and commercialization.

In addition, companies that
perceive us to be a competitor may be unwilling to assign or license rights to us. We also may be unable to license or acquire IP rights
on terms that would allow us to make an appropriate return on our investment. If we are unable to successfully obtain or maintain licenses
or other rights from other parties to use IP of those parties, our business, financial condition and prospects for growth could suffer.

If we fail to comply with our obligations
in the agreements under which we license IP rights from other parties or otherwise experience disruptions to our business relationships
with our licensors, we could be required to pay monetary damages or could lose license rights that are important to our business.

Many of our projects (including
our Lead Projects) are based on IP which we have licensed from other parties. (See “ Item 4. Information on the Company - B.
Business Overview - Intellectual Property”) Certain of these license agreements impose diligence, development or commercialization
obligations on us, such as obligations to pay royalties on net product sales of our drug candidates once commercialized by us, to pay
a percentage of sublicensing revenues if the licensed product is sublicensed, to make other specified milestone and/or annual payments
relating to our drug candidates or to pay license maintenance and