1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

Purport of claim and appeal

1...

In the first instance court, the plaintiff sought for the payment of the part-time contract reversal, machine defect, compensation for damages caused by infringement of trademark rights, advertisement and publicity expenses to the defendant.

The court of first instance partially accepted the claim for damages caused by infringement of trademark rights, and all of the remaining claims were dismissed.

The defendant did not appeal against this, but only the plaintiff appealed against each part of the damage compensation, advertisement, and publicity expenses caused by unilateral cancellation of contract, defects of machinery, etc.

Therefore, the object of this Court's adjudication is limited to the above appeal.

Basic Facts

On April 29, 2011, the Plaintiff and the Defendant concluded an agency contract with the effect that “the instant machines produced by the Defendant (hereinafter “instant machines”) exclusively sell them in Korea.” On May 20, 2011, the Plaintiff and the Defendant partially modified the said contract (hereinafter “instant contract”).

The main contents of the instant contract are as follows.

Article 3 [Terms and Conditions of Contracts] The Plaintiff shall guarantee to purchase 20 items each year designated on the premise that the Plaintiff will secure exclusive rights and status to the domestic total sales market, and purchase items as follows:

1. Objects to be purchased: AJU-128UV-200 & 600

2. Unit cost of supply: 128UV-200mW (128mW) 160 million won: 72UV-600mW (72ch) 2220 million won: 128UV-600mW (128mW).

3. Quantity of guarantee for purchase: 20 vehicles annually.

4. Contract deposit and intermediate payment: A 20% of the down payment (300 million won) of the total ordered amount of 10 vehicles shall be paid in cash within 15 days, and an intermediate payment shall be paid in cash at 30% (450 million won) on the day following the date of the payment of the down payment.

5. Balance: The Defendant shall issue to the Plaintiff a balance payment (including value-added tax) prior to the shipment of equipment and a written insurance to guarantee the performance of defects.

6. Supply Method: the minimum number of goods shall be at least 100,000 semi-annual, and goods shall be subject to a normal purchase contract on condition that the down payment is 50% and the balance is 50%.