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that we or our employees, advisors or consultants have inadvertently or otherwise used or disclosed intellectual property, including trade secrets or other proprietary information, of a former
employer or other third party. We may in the future also be subject to claims that an employee, advisor or consultant performed work for us that conflicts with that person's obligations to a third
party, such as an employer, and thus, that the third party has an ownership interest in the intellectual property arising out of work performed for us. Litigation may be necessary to defend against
these claims. Even if we are successful in defending against these claims, litigation could result in substantial costs and be a distraction to management. If we are unsuccessful in defending against
such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights or personnel. A loss of key personnel or their work product could hamper or prevent our ability
to commercialize PRT-201 or any additional product candidates, which would materially adversely affect our commercial development efforts.
Numerous factors may limit any potential competitive advantage provided by our intellectual property rights.
The degree of future protection afforded by our intellectual property rights is uncertain because intellectual property rights have
limitations, and may not adequately protect our business, provide a barrier to entry against our competitors or potential competitors, or permit us to maintain our competitive advantage. Moreover, if
a third party has intellectual property rights that cover the practice of our technology, we may not be able to exercise or extract value from our intellectual property rights fully or at all. The
following examples are illustrative:
- we might not have been the first to make the inventions covered by a patent or pending patent application that we own;
- we might not
have been the first to file patent applications covering an invention;
- others may independently develop similar or alternative technologies without infringing our intellectual property
third parties may compete with us in jurisdictions where we do not pursue and obtain patent protection;
- pending patent applications that we own may not lead to issued
- patents that we own may not provide us with any competitive advantages, or may be held invalid or unenforceable;
- third parties may assert an ownership interest in our intellectual property;
- we may not develop or in-license additional proprietary technologies that are patentable; and
the patents or proprietary rights of others may have an adverse effect on our business.
any of these events occur, they could significantly harm our business and results of operations.
Risks Related to Our Business and Industry
If we fail to attract and keep senior management and key scientific personnel, we may be unable to successfully develop our products, conduct our clinical trials and
commercialize our product candidates.
Our future growth and success depend on our ability to recruit, retain, manage and motivate our employees. We are highly dependent on
our senior management team, in particular, Timothy Noyes, our President and Chief Executive Officer, Steven Burke, our Senior Vice President and Chief Medical Officer, George Eldridge, our Senior Vice
President, Chief Financial Officer, Treasurer and Secretary and Daniel Gottlieb, our Vice President, Marketing and Business Development, as well as the other principal members of our management and
Although we have formal employment agreements with our executive officers, these agreements do not prevent them from terminating their employment with us at any time. The loss of the services of any
member of our senior management or scientific team or the inability to hire or retain experienced management personnel could adversely affect our ability to execute our business plan and harm our