Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 39

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 39
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 privacy and data protection.
As a result, even the perception of noncompliance, whether or not valid, may damage our reputation.

If we fail to protect our intellectual property
rights, it could materially adversely affect our business and our brand.

Our ability to compete and
our success depend, in part, upon our intellectual property. We rely on patent, copyright, trade secret and trademark laws, and confidentiality
or license agreements with our employees, customers, vendors, partners and others to protect our intellectual property rights. We may
need to devote significant resources, including cybersecurity resources, to monitoring our intellectual property rights. In addition,
the steps we take to protect our intellectual property rights may be inadequate or ineffective, or may not provide us with a significant
competitive advantage. Our intellectual property could be wrongfully acquired as a result of a cyber-attack or other wrongful conduct
by third parties or our personnel. Litigation brought to protect and enforce our intellectual property rights could be costly and time-consuming.
Furthermore, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims, and countersuits attacking
the validity and enforceability of our intellectual property rights, which may be successful.

We may be sued by third parties for infringement
of their proprietary rights, which could have a materially adverse effect on our business, financial condition or results of operations.

There is considerable intellectual
property development activity in our industry. Third parties, including our competitors, may own or claim to own intellectual property
relating to our products or services and may claim that we are infringing their intellectual property rights. We may be found to be infringing
upon such rights, even if we are unaware of their intellectual property rights. Any claims or litigation could cause us to incur significant
expenses and, if successfully asserted against us or if we decide to settle, could require that we pay substantial damages or ongoing
royalty payments, obtain licenses, modify applications, prevent us from offering our services, or require that we comply with other unfavorable
terms. We may also be obligated to indemnify our customers, vendors or partners in connection with any such claim or litigation. Even
if we were to prevail in such a dispute, any litigation regarding our intellectual property could be costly and time-consuming.

An active trading market for our Shares
may not be sustained.

Prior to our initial public
offering, there has not been a public market for our Ordinary Shares. An active public market for our Shares, however, may not develop
or be sustained after the IPO