Advanced Photonix (API)

Pursuing infringers of our intellectual property rights can be costly.

Pursuing infringers of our proprietary rights could result in significant litigation costs, and any failure to pursue infringers could result in our competitors utilizing our technology and offering similar products, potentially resulting in loss of a competitive advantage and decreased sales. Despite our efforts to protect our proprietary rights, existing patent, copyright, trademark and trade secret laws afford only limited protection. In addition, the laws of some foreign countries do not protect our proprietary rights to the same extent as do the laws of the United States. Protecting our intellectual property is difficult especially after our employees or our third-party contractors end their employment or engagement. We may have employees leave us and go to work for competitors. Attempts may be made to copy or reverse-engineer aspects of our products or to obtain and use information that we regard as proprietary. Accordingly, we may not be able to prevent misappropriation of our technology or prevent others from developing similar technology. Furthermore, policing the unauthorized use of our products is difficult and expensive. Litigation may be necessary in the future to enforce our intellectual property rights or to determine the validity and scope of the proprietary rights of others. The resulting costs and diversion of resources could significantly harm our business. If we fail to protect our intellectual property, we may not receive any return on the resources expended to create the intellectual property or generate any competitive advantage based on it.

Pursuing infringers of our
intellectual property rights can be costly.

Pursuing infringers of our proprietary
rights could result in significant litigation costs, and any failure to pursue
infringers could result in our competitors utilizing our technology and offering
similar products, potentially resulting in loss of a competitive advantage and
decreased sales. Despite our efforts to protect our proprietary rights, existing
patent, copyright, trademark and trade secret laws afford only limited
protection. In addition, the laws of some foreign countries do not protect our
proprietary rights to the same extent as do the laws of the United States.
Protecting our intellectual property is difficult especially after our employees
or our third-party contractors end their employment or engagement. We may have
employees leave us and go to work for competitors. Attempts may be made to copy
or reverse-engineer aspects of our products or to obtain and use information
that we regard as proprietary. Accordingly, we may not be able to prevent
misappropriation of our technology or prevent others from developing similar
technology. Furthermore, policing the unauthorized use of our products is
difficult and expensive. Litigation may be necessary in the future to enforce
our intellectual property rights or to determine the validity and scope of the
proprietary rights of others. The resulting costs and diversion of resources
could significantly harm our business. If we fail to protect our intellectual
property, we may not receive any return on the resources expended to create the
intellectual property or generate any competitive advantage based on
it.