Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 68

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 68
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1 Negative Lists prescribe that any domestic enterprise engaging in businesses prohibited
by the Negative Lists that lists, issues securities and trades shares overseas must obtain pre-approval consent from relevant competent
regulator; overseas investors must not engage in the operation and management of the enterprise, and the percentage of foreign shareholding
is subject to the relevant provisions in the administrative measures for domestic securities investments by foreign investors. The Foreign
Investment Law provides that foreign invested entities operating in foreign restricted or prohibited industries will require market entry
clearance and other approvals from relevant PRC governmental authorities. The current industry entry clearance requirements governing
investment activities in the PRC by foreign investors are set out in 2021 Negative Lists.

Furthermore, the Foreign Investment Law provides that
foreign invested enterprises established according to the existing laws regulating foreign investment may maintain their structure and
corporate governance within five years after the implementing of the Foreign Investment Law.

In addition, the Foreign Investment Law also provides
several protective rules and principles for foreign investors and their investments in the PRC, including, among other things, that local
governments shall abide by their commitments to the foreign investors; foreign-invested enterprises are allowed to issue stocks and corporate
bonds; except for special circumstances, in which case statutory procedures shall be followed and fair and reasonable compensation shall
be made in a timely manner, expropriation or requisition of the investment of foreign investors is prohibited; mandatory technology transfer
is prohibited; and the capital contributions, profits, capital gains, proceeds out of asset disposal, licensing fees of intellectual property
rights, indemnity or compensation legally obtained, or proceeds received upon settlement by foreign investors within China, may be freely
remitted inward and outward in RMB or a foreign currency. Also, foreign investors or the foreign investment enterprise should be subject
to legal liabilities for failing to report investment information in accordance with the requirements.

Regulations on Intellectual Property Rights

The PRC has adopted comprehensive legislation governing
intellectual property rights, including copyrights, patents, trademarks and domain names.

Copyright. Copyright in the PRC, including
copyrighted software, is principally protected under the Copyright Law of the PRC promulgated in February 2010 which took effect in April
2010 (the “ Copyright Law”) which has been amended by SCNPC on November 11, 2020 and became effective on June 1, 2021, and
related rules and regulations. Under the Copyright Law, the term of protection for copyrighted software of legal persons is