Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 27

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 27
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,
despite our efforts, we may not be able to prevent other parties from infringing upon or misappropriating our IP. Litigation could result
in substantial costs and diversion of management resources, which could harm our business and financial results. In addition, in an infringement
proceeding, a court may decide that patent rights or other IP rights owned by us are invalid or unenforceable, or may refuse to stop the
other party from using the technology at issue on the grounds that our patent rights or other IP rights do not cover the technology in
question. An adverse result in any litigation proceeding could put our patent, as well as any patents that may issue in the future from
our pending patent applications, at risk of being invalidated, held unenforceable or interpreted narrowly. Furthermore, because of the
substantial amount of discovery required in connection with IP litigation, there is risk that some of our confidential information could
be compromised by disclosure during this type of litigation.

If we initiate legal proceedings
against another party to enforce our patent, or any patents that may be issued in the future from our patent applications, that relates
to one of our drug and diagnostics technology candidates, the defendant could counterclaim that such patent rights are invalid or unenforceable.
In patent litigation in the United States, defendant counterclaims alleging invalidity or unenforceability are commonplace, and there
are numerous grounds upon which another party can assert invalidity or unenforceability of a patent. Parties may also raise similar claims
before administrative bodies in the United States or abroad, even outside the context of litigation. Such mechanisms include ex parte
re-examination, inter partesreview, post-grant review, derivation and equivalent proceedings in non-U. S. jurisdictions,
such as opposition proceedings. Such proceedings could result in revocation or amendment to our patents in such a way that they no longer
cover and protect our drug and diagnostics technology candidates. With respect to the validity of our patents, for example, there may
be invalidating prior art of which we, our patent counsel, and the patent examiner were unaware during prosecution. If a defendant were
to prevail on a legal assertion of invalidity and/or unenforceability, we would lose at least part, and perhaps all, of the patent protection
on our drug and diagnostics technology candidates. Such a loss of patent protection could have a material adverse impact on our business.

We may not be able to prevent
misappropriation of our trade secrets or confidential information