Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 22

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 22
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 unenforceable.

The patent position of biotechnology
and pharmaceutical companies is generally uncertain because it involves complex legal and factual considerations. The standards applied
by the EPO, the U. S. Patent and Trademark Office, or USPTO, and foreign patent offices in granting patents are not always applied uniformly
or predictably. For example, there is no uniform worldwide policy regarding patentable subject matter or the scope of claims allowable
in biotechnology and pharmaceutical patents. Consequently, patents may not issue from our pending patent applications and even if they
do issue, such patents may not issue in a form that effectively prevents others from commercializing competing products. As such, we do
not know the degree of future protection that we will have on our proprietary products and technology.

Additionally, the
issuance of a patent is not conclusive as to its inventorship, scope, validity or enforceability, and our patents may be challenged
in the courts or patent offices in the United States and abroad. Even if patents do successfully issue and even if such patents
cover our drug candidates, other parties may initiate, for patents filed before March 16, 2013 (i. e., the enactment of the America
Invents Act), interference or re-examination proceedings, for patents filed on or after March 16, 2013, post-grant
review, inter partesreview, nullification or derivation proceedings, in court or before patent offices, or similar
proceedings challenging the validity, enforceability or scope of such patents, which may result in the patent claims being narrowed
or invalidated. Successful defense of its patents can constitute a material factor in a company’s expenses. According to an
article published by BlueIron (https://finance. yahoo. com/news/current-patent-litigation-costs-between-120200165. html), depending on
the value at stake, the American Intellectual Property Law Association’s “2019 Report of the Economic Survey”
reported the average costs of a patent litigation are between $2.3 million to $4.0 million.

In addition, the fact that
the Company has exclusive rights to prevent others from using a patented invention does not necessarily mean that the Company
itself will have the unrestricted right to use that invention. Other parties may obtain ownership or licenses to patents or other
IP rights that cover the manufacture, use or sale of our current or future products (or elements thereof). This may enable such other
parties to enforce their patents or IP rights