Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 27

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 27
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, are settled out of court,
or are determined in our favor, we may be required to expend significant time and financial resources on the defense of such claims. Regardless
of the merits or eventual outcome, such a claim could adversely impact our brand and business. Any such assertions may require us to enter
into royalty arrangement or result in us being unable to use certain intellectual property. Infringement assertions by third parties may
involve patent holding companies or other patent owners who have no relevant product revenue, and therefore our own issued and pending
patents may provide little or no deterrence to these patent owners in bringing intellectual property right claims against us. Furthermore,
an adverse outcome of a dispute may require us to pay damages, potentially including treble damages and attorney’s fees, if are
found to have willfully infringed a party’s intellectual property; case making, licensing or using our solutions that are alleged
to infringe or misappropriate the intellectual property of others; expend additional development resources to redesign our solutions’
enter into potentially unfavorable royalty or license agreements in order to obtain the right to use necessary technologies or works;
and to indemnify our partners, customers and other third parties. Any of these events could adversely impact our business, results of
operations and financial condition.

Additionally, there may be
third-party intellectual property rights or other rights that are infringed by our products, services or other aspects of our business
without our awareness. To the extent that our employees or consultants use intellectual property owned by others in their work for us,
disputes may arise as to the rights in related know-how and inventions or other proprietary assets. If any third-party infringement claims
are brought against us, we may be forced to divert management’s time and other resources from our business and operations to defend
against these claims, regardless of their merits.

The application and interpretation
of China’s intellectual property laws and the procedures and standards for granting trademarks, copyrights, know-how or other intellectual
property rights in China, and the laws governing personal rights are still evolving and remain uncertain, and we cannot assure you that
PRC courts or regulatory authorities would agree with our analysis. If we were found to have violated the intellectual property rights
of others, we may be subject to liability for our infringement activities or may be prohibited from using such intellectual property or
relevant contents, and we may incur licensing or usage fees or be forced to develop alternatives of our own. As a result, our reputation
may be harmed and our business and financial performance