1. The plaintiff (Counterclaim defendant)'s appeal against the principal lawsuit is dismissed.

2. The part concerning the counterclaim in the judgment of the court of first instance.

1. Basic facts

A. On October 1, 2015, the Plaintiff and C Co., Ltd. entered into a contract on the right to commercialization (hereinafter “C”) with the Plaintiff and C Co., Ltd. located in Japan (hereinafter “C”).

B) As between the Plaintiff and the Plaintiff, the contract on the right to commercialization (hereinafter referred to as the “instant commercialization right contract”) under which C directly manufactures and sells goods using D (the character in the shape of animal produced in Japan) in which C manages the right to commercialization, or the right to commercialization may be granted to third parties (hereinafter referred to as “the character in the shape of animal produced in Japan”).

2) The contents of the instant contract relating to the commercialization are as follows.

Article 1 Section C of the Agreement on the Commercialization Rights allows the Plaintiff to manufacture and sell products using this work to a third party, or to use this work for services or advertisements, on the basis of the terms and conditions set out in this Agreement, with respect to the "E" portion among TV animation films D, which the Plaintiff manages the right to commercialization, and the "E" portion of this work" (hereinafter referred to as "E").

This permit is referred to as “the exercise of commercialization rights”.

Article 4 The plaintiff shall comply with the rules below in the exercise of the right to commercialization of this work.

4. In the exercise of the right to commercialization, the Plaintiff shall obtain prior submission to C and approval from C, such as printed materials, propaganda, advertisement, TV advertisement, etc., printed materials, advertising materials, correction sites, CM-related drawings, samples, etc. conducted in connection with the manufacture and implementation of the goods and services using this material.

6. The Plaintiff shall provide four samples of products or products manufactured or manufactured by the exercise of the right to commercialization to C free of charge.

Article 5

2. With respect to a contract that the Plaintiff concludes with a third party by exercising the right of commercialization under Article 1(2), the third party is against that third party.