A. The Plaintiff is a U.S. corporation that holds a license for encryption technology for protecting the copyright of digital content, which is composed of encrypted technology and information security technology, etc. (hereinafter “instant patent”).

B. On October 1, 2012, the Plaintiff entered into a contract with C, a domestic corporation (hereinafter “C”) under which the Plaintiff granted C the right to use the instant patent and is to receive US$7400,000 (hereinafter “instant usage fee”) from C as usage fees (hereinafter “instant use contract”).

The Plaintiff and C agreed that the instant patent is “all patents and patent applications owned or controlled by the Plaintiff and its subsidiaries, including, but not limited to, the patents listed in the separate “Added”, and “AddedB” are composed of a total of 44 patent lines registered in the world, a total of 489 separate patents, and a total of 27 patents registered in the Republic of Korea.

C. According to the instant use contract, C paid 3,700,000 US dollars to the Plaintiff on October 25, 2012 and January 10, 2013 as the instant royalty, and paid 55,00 US dollars (612,53,500, 2013, 589, 465,500, 201) to the Defendant by withholding the limited tax rate of 15% under Article 14(1) of the Convention between the Republic of Korea and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the Encouragement of International Trade and Investment (hereinafter “Korea-U.S. Tax Convention”), deeming that the instant royalty constituted domestic source income.

The Plaintiff, around October 12, 2015, is the Defendant’s income from a patent that most of the instant royalty was not registered in Korea, and thus, the tax amount withheld on the instant royalty is the Plaintiff.