Regarding the lawsuit contested by Mark Gonzales, Sakurainternational Co., Ltd. (Head Office: Kashiwa City, Chiba Prefecture; Representative Director: Taro Iridori, hereinafter "Sakurainternational") and others, concerning the ownership of copyright for artwork created by Mark Gonzales (hereinafter "the Artwork"; *1) and the right to demand the return of trademark rights related to trademarks held by Sakurainternational (hereinafter "the Trademarks"; *2), the Supreme Court issued a decision (hereinafter "the Decision") on June 26, 2026. This decision upholds the judgment of the Intellectual Property High Court (hereinafter "IP High Court Judgment"), which recognized a significant portion of Mark Gonzales's claims. The IP High Court Judgment ruled that: - The copyright for the Artwork does not belong to Sakurainternational. - Sakurainternational has an obligation to return (transfer registration procedures for) trademark rights concerning five of the Trademarks (the trademarks in the upper section of the table in *2) to Mark Gonzales. (https://shiffon.com/2025/11/05/3516/). * For three of the Trademarks (the trademarks in the lower section of the table in *2), the trademarks themselves were invalidated before the IP High Court Judgment was rendered, making it unnecessary to return the trademark rights to Mark Gonzales. Sakurainternational and others appealed and applied for acceptance of appeal to the Supreme Court regarding the IP High Court Judgment. However, the Supreme Court has now dismissed the appeals and refused acceptance of the appeals, thereby finalizing the IP High Court Judgment. The Decision is highly significant as it affirms the legitimacy of Mark Gonzales's rights by the Supreme Court. Based on this Decision, our company will continue to strengthen and accelerate brand operations in cooperation with Mark Gonzales and TULUMIZE inc., while also demanding responsible action from Sakurainternational and others. For inquiries regarding this matter, please