Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 74

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 74
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 may not be applied consistently due to the lack of clear guidance on statutory interpretation. Confidentiality, invention
assignment and non-compete agreements may be breached by counterparties, and there may not be adequate remedies available to us for any
such breach. Accordingly, we may not be able to effectively protect our intellectual property rights or to enforce our contractual rights
in China. Policing any unauthorized use of our intellectual property is difficult and costly and the steps we take may be inadequate to
prevent the infringement or misappropriation of our intellectual property. In the event that we resort to litigation to enforce our intellectual
property rights, such litigation could result in substantial costs and a diversion of our management and financial resources, and could
put our intellectual property at risk of being invalidated or narrowed in scope. We can provide no assurance that we will prevail in such
litigation, and even if we do prevail, we may not obtain a meaningful recovery. In addition, our trade secrets may be leaked or otherwise
become available to, or be independently discovered by, our competitors. Any failure in maintaining, protecting or enforcing our intellectual
property rights could have a material adverse effect on our business, results of operations and financial condition.

We may be accused of infringing intellectual property rights of others and content restrictions of relevant laws.

Third parties may claim that
the content posted by us or our products and services infringe upon their intellectual property rights. For example, while offering our
advertising services, we may be subject to liabilities such as infringement of copyrights or trademarks and to other claims based on the
materials and content posted by us or used on our products and services. The possibility of intellectual property claims against us increases
as we continue to grow. Such claims, whether or not having merit, may result in our expenditure of significant financial and management
resources, injunctions against us or payment of damages. We may need to obtain licenses from third parties who allege that we have infringed
their rights, but such licenses may not be available on terms acceptable to us or at all. These risks have been amplified by the increase
in the number of third parties whose sole or primary business is to assert such claims.

China has enacted laws and
regulations governing internet access and the distribution of products, services, news, information, audio-video programs and other content
through the internet. The PRC government has prohibited the distribution of information through the internet that it deems to be in violation
of PRC laws and regulations. If any of the information disse