Investors

1. Intellectual Property ("IP") Management Strategy

To strengthen competitive advantage, Innolux (hereinafter, "INX") continuously aligns business objectives with R&D resources to formulate a forward-looking IP strategy, supported by systematic IP deployment and protection measures. INX has adopted the Taiwan Intellectual Property Management System ("TIPS") and follows the continuous improvement cycle of "Plan-Do-Check-Act" to enhance and refine IP management capabilities.

2. IP Management Policies

1. Keep on deploying key technology IP.
2. Elevate information security and sustain ISO 27001 certification.
3. Analyze to market competition circumstances , take inventory of Innolux IP regularly, and coupled with active IP monetization strategy.
4. Continuously provide IP knowledge training to employees.
5. Continuously optimize IP management system.

3. Intellectual Property Management System

1. Encourage Patent Applications:

Enhance product innovation and R&D capabilities by encouraging patent applications to strengthen the control and application of IP rights. This includes proposal evaluation procedure, reward regulation, patent application evaluation, and patent activation strategy. Additionally, the establishment of patent management regulation and systems creates a comprehensive patent control framework, enhance the control and application of patent deployment, and avoid IP risks.

2. Enhance Trademark Strategy

The main trademarks of INX have been applied for and obtained trademark rights or related authorizations, but still continuously plan and apply for trademarks according to IP policies of INX.

3. Control Confidential Document

Implement strict security measures to control IP rights and confidential documents, ensuring INX's IP rights are safeguarded. Systematic processes are employed to protect IP rights and reduce the risk of improper disclosure.

4. Enhance employee knowledge by IP training courses to protect IP rights.
5. Conduct periodic internal audits and management reviews to assess the achievement of IP objectives, ensuring the continuous revision and improvement of IP management system.

4. IP Achievements

1. Patent Portfolio

As of 30 April, 2025, INX holds approximately 14,395 patents worldwide. The steady annual increase in the number of granted patents reinforces technological leadership and provides stronger protection for both INX and its customers.

2. Green-Technology Patents in related to ESG

Committed to sustainability, INX continue to develop and secure patents for green technologies. According to the WIPO Green Technology Listing, INX had accumulated 678 green patents as of 30 April 2024.

3. Trademarks

With respect to trademarks, copyrights, and trade secrets, INX continues to apply its relevant management procedures and proactively conducts trademark clearance and portfolio planning. As of 30 April 2025, the Company had secured a total of 96 registered trademarks worldwide.

5. IP Risks and Countermeasures

For avoiding disputes and litigation to reduce competitiveness and impact revenue of INX, the following countermeasures have been established:

1. Set up procedures and inform channels to get related internal or external IP events promptly, and assist related departments to develop response strategies on time.
2. All contracts signed with suppliers include explicit IP non-infringement warranty clauses. In the event of IP infringement litigation, the suppliers are obligated to compensate INX and bear related legal responsibilities.

6. Primary Uses and Contributions of IP to Operations

To avoid infringement during the manufacturing process, INX has proactively engaged in developing its own patents and technologies since its inception. INX have recruited talented individuals from both domestic and international markets to join R&D team and have also assessed the feasibility of negotiating with foreign firms to obtain key technology usage licenses. Those actions enhance INX's competitive advantage. Additionally, INX continuously cultivate a strong legal support team to ensure IP been well-protected. Moving forward, IP management continue to align with INX business strategies and operational goals, focusing on the acquisition, management, and utilization of IP rights to protect operational freedom and demonstrate corporate governance performance and sustainability vision.

7. Implementation of IP Management Plans

1. In 2022, following TIPS regulations, "Intellectual Property Management Manual", "Intellectual Property Management Review Procedure", "Intellectual Property Confidential Document Management Specification", " Intellectual Property Audit and Correction Procedure", and "IP Consultation, Disputes Treatment and IP Rights Disposal Procedure" had been produced.
2. INX obtained Level A certification of TIPS in 2022, passed Level re-certification of TIPS in 2023, and passed Level AA certification of TIPS in 2024. The current certificate of Level AA of TIPS is valid through 31 Dec 2026.
3. INX reports the implementation status of various IP management systems to the board of directors annually. The lasted report was presented on first quarter of 2025.

8. Innovative IP Management Consulting Program

1. In 2024, INX was selected by the government-sponsored "Enhanced Corporate IP Management Program" and has completed the final review of (I) consultant of the integration of ESG and IP Management, and (II) IP Management Consulting in Level AA certification of TIPS.
2. By integrating ESG into the innovative intellectual property management system, INX has re-evaluated the existing IP management procedures, take inventory of current developing status of technologies, and review connection and deployment of green product patents. Leveraging our long-standing expertise in IP research and development, combined with our commitment to energy conservation, carbon reduction, and social responsibility, to concretize the INX's corporate social responsibility goals.
3. For further information on the IP management system aligns with environmental protection(E), social responsibility(S), and corporate governance sustainability issues(G), please refer to the presentation below.