Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 70

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 70
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 we transition to offering products that involve cloud-based solutions, including over-the-air updates, such products may increasingly be subject to cyber threats. Any unauthorized access to or control of our technology, including our proprietary software, or their systems, or any unauthorized access to or loss of end user data, could result in risks to end users, including a loss of vehicle control, which we may be unable to reestablish, or failure of our systems, any of which could have material adverse effects on our business, legal claims or proceedings. Vulnerabilities could be identified in the future and REE’s remediation efforts may not be successful. Any unauthorized access to or control of REE’s products or their systems could result in personal injury and/or death along with legal claims or proceedings, including in cases where there is a loss of data. Any of the above could materially negatively affect REE’s brand and harm its business, prospects, financial condition and operating results. In addition, regardless of their veracity, reports of unauthorized access to REE’s products, their systems or data, as well as other factors that may result in the perception that REE’s products, their systems or data are capable of being “hacked,” could materially negatively affect REE’s brand and harm its business, prospects, financial condition and operating results.

Risks Related to REE’s Intellectual Property

REE may incur significant costs and expenses in connection with the protection and enforcement of its intellectual property rights, including but not limited to litigation costs.

REE relies on a combination of patents, trade secrets (including know-how), employee and third-party nondisclosure agreements, copyrights, trademarks, intellectual property licenses, and other contractual rights to establish and protect its rights in its technology. Despite REE’s efforts to protect its proprietary rights, third parties may attempt to copy or otherwise obtain and use REE’s intellectual property or seek court declarations that they do not infringe upon its intellectual property rights. Monitoring unauthorized use of REE’s intellectual property is difficult and costly, and REE has taken or will take steps in an effort to reduce misappropriation. From time to time, REE may have to resort to litigation to enforce its intellectual property rights, which could result in substantial costs and diversion of its resources.

The protection of REE’s intellectual property rights is important to its future business opportunities. However, the measures REE takes to protect its intellectual property from unauthorized use by others may not be effective for various reasons, including the following:

• as noted below, some of the patent applications RE