Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 41

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 41
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 patent and trademark applications may not provide sufficiently
broad protection and may not be enforceable in actions against alleged infringers.

Even upon intellectual property
rights registration, there is no certainty that our intellectual property rights will provide us with substantial protection or commercial
benefit. Despite our efforts to protect our intellectual property, some of our innovations may not be protectable, and our intellectual
property rights may offer insufficient protection from competition or unauthorized use, lapse or expire, be challenged, narrowed, invalidated,
or misappropriated by third parties, or be deemed unenforceable or abandoned, which, could have a material adverse effect on our business,
financial condition, results of operations and prospects and the legal remedies available to us may not adequately compensate us.

We cannot guarantee that the
steps we take will be adequate to protect our technologies and intellectual property, that any patent and trademark applications will
lead to issued patents or registered trademarks, that others will not develop or patent similar or superior technologies or solutions,
or that our trademarks and other intellectual property will not be challenged, invalidated, or circumvented by others. Furthermore, effective
patent, trademark, copyright, and trade secret protection may not be available in every country in which our solutions are available or
where we have employees or independent contractors. In addition, the legal standards relating to the validity, enforceability, and scope
of protection of intellectual property rights in Internet-related industries are uncertain and still evolving. The steps we have taken
and will take may not prevent unauthorized use, reverse engineering, or misappropriation of our technologies and we may not be able to
detect any of the foregoing. Defending and enforcing our intellectual property rights may result in litigation, which can be costly and
divert management attention and resources. Any such litigation may not be successful even if such rights have been infringed and an adverse
decision could limit the scope of such rights. If our efforts to protect our technologies and intellectual property are inadequate, the
value of our intangible assets may be diminished and competitors may be able to replicate our solutions and methods of operations. Any
of the foregoing events could have a material adverse effect on our business, financial condition, and results of operations.

Risks Related to Legal Proceedings

We may incur material losses
and costs as a result of lawsuits or claims that may be brought against us which are related to product liability, warranty, product recalls,
client service interruptions or other matters, and any litigation against us could be costly and time-consuming to defend and could harm