Sangenic, a baby accessories manufacturer, owned the patent-in-suit regarding diaper disposal system products and refill cassettes and had Combi Corporation in Japan, its exclusive distributor, import and sell its patented products. The Tokyo District Court decided that Article 102(2) should not apply to that case, since Sangenic did not practice the patent-in-suit in Japan. It found the reasonable royalty of the patent-in-suit should be 10% and granted approximately $175,000 under Article 102(3).