Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 110

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 110
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 resources to advertising and marketing new
brands. Our competitors may infringe on our trademarks, and we may not have adequate resources to enforce our trademarks.

Much
of our intellectual property is protected as trade secrets or confidential know-how.

We
consider proprietary trade secrets to be important to our business. This type of information must be protected diligently by us to protect
its disclosure to competitors, since legal protections after disclosure may be minimal or non-existent. Accordingly, much of the value
of this intellectual property is dependent upon our ability to keep our trade secrets.

To
protect this type of information against disclosure or appropriation by competitors, our policy is to require our employees, consultants,
contractors and advisors to enter into confidentiality agreements with us. However, current or former employees, consultants, contractors
and advisers may unintentionally or willfully disclose our confidential information to competitors, and confidentiality agreements may
not provide an adequate remedy in the event of unauthorized disclosure of confidential information. Enforcing a claim that a third party
illegally obtained, and is using, trade secrets is expensive, time-consuming and unpredictable. The enforceability of confidentiality
agreements may vary from jurisdiction to jurisdiction.

Failure
to obtain or maintain trade secret protection could adversely affect our competitive position. Moreover, our competitors may independently
develop substantially equivalent proprietary information and may even apply for patent protection in respect of the same. If successful
in obtaining such patent protection, our competitors could limit our use of such trade secrets.

We
may be subject to claims challenging the inventorship or ownership of our patents and other intellectual property.

We
may also be subject to claims that former employees, suppliers, collaborators or other third parties have an ownership interest in our
patents or other intellectual property. We may be subject to ownership disputes in the future arising, for example, from conflicting
obligations of suppliers, consultants or others who are involved in developing our products. Litigation may be necessary to defend against
these and other claims challenging inventorship or ownership. If we fail in defending any such claims, in addition to paying monetary
damages, we may lose valuable intellectual property rights, such as exclusive ownership of, or right to use, valuable intellectual property.
Such an outcome could have a material adverse effect on our business. Even if we are successful in defending against such claims, litigation
could result in substantial costs and be a distraction to management and employees.

21

Intellectual
property rights do not necessarily address all potential threats to our business.

The
degree of future protection afforded by