Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 14

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 14
---
 business and competitive position.

We regard our trademarks, domain names, know-how,
proprietary technologies and similar intellectual property as critical to our success, and we rely on a combination of intellectual property
laws and contractual arrangements, including confidentiality and non-compete agreements with our employees and others to protect our proprietary
rights. Thus, we cannot assure you that any of our intellectual property rights would not be challenged, invalidated, circumvented or
misappropriated, or such intellectual property will be sufficient to provide us with competitive advantages. In addition, because of the
rapid pace of technological change, parts of our business rely on Internet of Things (IoT) technology, the network of physical objects
that feature an IP address for internet connectivity, and the communication that occurs between these objects and other Internet-enabled
devices and systems which will alert the users under pre-set conditions, developed or licensed by third parties, and we may not be able
to obtain or continue to obtain licenses and technologies from these third parties on reasonable terms, or at all.

  13  

It is often difficult to register, maintain and enforce
intellectual property rights in China. Statutory laws and regulations are subject to judicial interpretation and enforcement and 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. Preventing any
unauthorized use of our intellectual property is difficult and costly and the steps we take may be inadequate to prevent the 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 managerial and financial resources. We can provide no assurance that we will prevail
in such litigation. In addition, our trade secrets may be leaked or otherwise become available to, or be independently discovered by,
our competitors. To the extent that our employees or consultants use intellectual property owned by others in their work for us, disputes
may arise as to the rights in related know-how and inventions. Any failure in protecting or enforcing our intellectual property rights
could have a material adverse effect on our business, financial condition and results of operations.

We may be subject to intellectual property infringement
claims, which may be expensive to defend and may disrupt our business and operations.