Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 22

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 22
---
 cause a loss of customers, reduce our revenues and harm our competitive position.

We rely on a combination of
patent, copyright, trademark, software registration, anti-unfair competition and trade secret laws, as well as confidentiality agreements
and other methods to protect our intellectual property rights. To protect our trade secrets and other proprietary information, employees,
customers, subcontractors, consultants, advisors and collaborators are required to enter into confidential agreements. These agreements
might not provide effective protection for the trade secrets, know-how or other proprietary information in the event of any unauthorized
use, misappropriation or disclosure of such trade secrets, know-how or other proprietary information. Our patent applications may not
issue as patents or may not issue as patents that provide meaningful protection against third parties. Policing unauthorized use of proprietary
technology is difficult and expensive. The steps we have taken may be inadequate to prevent the misappropriation of our proprietary technology.
Reverse engineering, unauthorized copying, other misappropriation, or negligent or accidental leakage of our proprietary technologies
could enable third parties to benefit from our technologies without obtaining our consent or paying us for doing so, which could harm
our business and competitive position. Though we are not currently involved in any litigation with respect to intellectual property, we
may need to enforce our intellectual property rights through litigations. Litigations relating to our intellectual property may not prove
successful and might result in substantial costs and diversion of resources and management attention.

We may face intellectual property infringement
claims that could be time-consuming and costly to defend. If we fail to defend ourselves against such claims, we may lose significant
intellectual property rights and may be unable to continue providing our existing services.

Our success largely depends on our ability to use and develop our technology
and services without infringing the intellectual property rights of third parties, including copyrights, trade secrets and trademarks.
We may be subject to litigations involving claims of violation of other intellectual property rights of third parties. The holders of
other intellectual property rights potentially relevant to our service offerings may make it difficult for us to acquire a license on
commercially acceptable terms. Also, we may be unaware of intellectual property registrations or applications relating to our services
that may give rise to potential infringement claims against us. There may also be technologies licensed to and relied on by us that are
subject to infringement or other corresponding allegations or claims by third parties which may damage our ability to rely on such technologies.
We are subject to additional risks as a result of our recent and proposed acquisitions and