Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 140

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 140
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 Fusemachines’ proprietary information may otherwise become known or be independently developed by its competitors or other third parties. To the extent that its employees, consultants,
contractors, advisors and other third parties use intellectual property owned by others in their work for Fusemachines, disputes may arise as to the rights in related or resulting know-how and inventions. Costly and time-consuming litigation could
be necessary to enforce and determine the scope of Fusemachines’ proprietary rights, and failure to obtain or maintain protection for its proprietary information could adversely affect its competitive business position. Furthermore, laws
regarding trade secret rights in certain markets where Fusemachines operates may afford limited or no protection for its trade secrets.

Fusemachines also relies on physical and electronic security measures to protect its proprietary information, but it cannot provide assurance
that these security measures will not be breached or that these measures will provide adequate protection. There is a risk that third parties may obtain and improperly utilize Fusemachines’ proprietary information to its competitive
disadvantage. Fusemachines may not be able to detect or prevent the unauthorized use of such information or take appropriate and timely steps to enforce its intellectual property rights.

In addition, while the majority of Fusemachines’ algorithms utilized for its products are proprietary, including those most critical to
the company’s products, certain algorithms which form a part of these products are made

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available under “open source” licenses. Fusemachines expects to continue to incorporate open source software in the company’s solutions in the future. Open source software is typically freely available, but is licensed under various requirements that bind the licensee. While the use of open source software may reduce development costs and speed up the development process, it may also present certain risks, that may be greater than those associated with the use of third-party commercial software, including but not limited to potential non-compliance with these licenses. Further, depending on the manner in which such licenses were interpreted and applied to software code that combines proprietary and open source software and source code, companies have in the past faced restrictions on their ability to commercialize certain of our products, and it is possible that Fusemachines could be subject to similar restrictions in the future. Algorithms embedded in AI solutions, and AI datasets, often suffer from lack of transparency, bias, and risks of inadvertent disclosure of information, which could subject us to adverse consequences. AI systems are created with a variety of tools including machine learning, natural language processing, computer vision, and neural networks. AI systems are capable of behaving in