Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 20

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 20
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 a manner that imposes unanticipated conditions or restrictions on our ability
to commercialize our solutions. Open-source software providers may also change their open-source offerings to commercial products. The
licenses applicable to our use of open-source software may require that source code that is developed using open-source software be made
available to the public and that any modifications or derivative works to certain open-source software continue to be licensed under open-source
licenses. Moreover, we cannot ensure that we have not incorporated additional open-source software in our software in a manner that is
inconsistent with the terms of the applicable license or our current or future policies and procedures. In that event, we could be required
to seek licenses from third parties in order to continue offering our solutions, to re-develop our solutions, to discontinue sales of
our solutions, or to release our proprietary software source code under the terms of an open-source license, any of which could have a
material adverse effect on our business.

Although we employ open-source
software license screening measures, if we were to combine our proprietary software products with open-source software in a certain manner
we could, under certain open-source licenses, be required to release the source code of our proprietary software products. If we fail
to comply with these licenses, we may be subject to certain requirements, including requirements that we offer our solutions that incorporate
the open-source software for no cost, that we make available source code for modifications or derivative works we create based upon, incorporating
or using the open-source software and that we license such modifications or derivative works under the terms of applicable open-source
licenses. If an author or other third party that distributes such open-source software were to allege that we had not complied with the
conditions of one or more of these licenses, we could be required to incur significant legal expenses defending against such allegations
and could be subject to significant damages, enjoined from the sale of our products that contained the open-source software and required
to comply with onerous conditions or restrictions on these products, which could disrupt the distribution and sale of these products.

From time to time, there have
been claims challenging the rights in open-source software against companies that incorporate it into their products. We and our customers
may face claims from third parties claiming infringement of their intellectual property rights for what we believe to be permissive open-source
software, or demanding the release or license of the open-source software or derivative works that we developed using such software (which
could include our proprietary source code) or otherwise seeking