Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 134

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 134
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 enforcement is not as
strong as that in the United States and Israel.

Many companies have encountered
significant problems in protecting and defending intellectual property in foreign jurisdictions. The legal systems of certain countries,
particularly China and certain other developing countries, do not favor the enforcement of patents, trade secrets and other intellectual
property, particularly those relating to drug substances and product candidates and biopharmaceutical and biotechnology products, which
could make it difficult for the combined company to stop the infringement of its patents or marketing of competing products in violation
of its proprietary rights generally. To date, the combined company have not sought to enforce any issued patents in these foreign jurisdictions.
Proceedings to enforce the combined company’s patent rights in foreign jurisdictions could result in substantial costs and divert
its efforts and attention from other aspects of its business, could put its patents at risk of being invalidated or interpreted narrowly
and its patent applications at risk of not issuing and could provoke third parties to assert claims against the combined company. The
combined company may not prevail in any lawsuits that it initiates and the damages or other remedies awarded, if any, may not be commercially
meaningful. The requirements for patentability may differ in certain countries, particularly developing countries. Certain countries in
Europe and developing countries, including China and India, have compulsory licensing laws under which a patent owner may be compelled
to grant licenses to third parties. In those countries, the combined company and its licensors may have limited remedies if patents are
infringed or if it or its licensors are compelled to grant a license to a third party, which could materially diminish the value of those
patents. This could limit its potential revenue opportunities. Accordingly, its efforts to enforce its intellectual property rights around
the world may be inadequate to obtain a significant commercial advantage from the intellectual property that it develops or licenses.

If the combined company is unable to maintain
effective proprietary rights for its product candidates, it may not be able to compete effectively in its markets.

In addition to the
protection afforded by any patents currently owned and that may be granted, historically, it has relied on trade secret protection
and confidentiality agreements to protect proprietary know-how that is not patentable or that the combined company elects not to
patent, processes that are not easily known, knowable or easily ascertainable, and for which patent infringement is difficult to
monitor and enforce and any other elements of its product candidate discovery and development processes that involve proprietary
know-how, information or technology that is not covered by patents. However