Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 72

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 72
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 or ownership of our IP, we may in the future be subject to claims
that former employees, collaborators or other parties have an interest in our patents or other IP as inventors or co-inventors. For example,
we may have inventorship disputes arise from conflicting obligations of consultants or others who are involved in developing our drug
and diagnostics technology candidates and who have not clearly contracted to transfer or assign any rights they may have to the Company.
In addition, for our licensed patents, although a majority of our licensors have procured assignment forms and records from inventors
to affirm their ownership in the licensed IP, another party or former employee or collaborator of our licensors not named in the patents
may challenge the inventorship of claim an ownership interest in one or more of our or our licensors’ patents. Litigation may
be necessary to defend against these and other claims challenging inventorship. If we fail in defending any such claims, in addition to
paying monetary damages, we may lose rights such as exclusive ownership of, or right to use, our patent rights or other IP. Such an outcome
could have a material adverse effect on our business. Even if we are successful in defending against such claims, litigation could result
in substantial costs and be a distraction to management and other employees.

If we are sued for infringing IP rights of other parties, such litigation could be costly and time-consuming and could prevent or delay us from developing or commercializing our drug candidates, the outcome of which would be uncertain and could have a material adverse effect on the success of our business.

Our commercial success depends
in part on our avoiding infringement of the patents and other IP rights of other parties. There is a substantial amount of litigation
involving patent and other IP rights in the biotechnology and pharmaceutical industries. Numerous issued patents, provisional patents
and pending patent applications, which are owned by other parties, exist in the fields in which we are developing drug candidates. As
the biotechnology and pharmaceutical industries expand and more patents are issued, the risk increases that our drug candidates may give
rise to claims of infringement of the patent rights of others.

Other parties may assert that
we are employing their proprietary technology without authorization. There may be other patents of which we are currently unaware with
claims to materials, formulations, methods of manufacture or methods for treatment related to the use or manufacture of our drug candidates.
Because patent applications can take many years to issue, there may be currently pending patent applications or provisional patents which
may later result in issued