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1. The amount of tax imposed by one of the contracting States on royalty derived from sources within that contracting State by a resident or corporation of the other contracting State, not having a permanent establishment situated in the former contracting State, shall not exceed 15 percent of the amount of such royalty.

2. The term "royalty" as used in the present Article means any royalty and other amount paid as consideration for using, or for the right to use, any copyright, patent, design, secret process and formula, trade-mark or other like property, and includes rentals and like payments in respect of motion picture films or for the use of industrial, commercial, or scientific equipment; but does not include any royalty and other amount paid in respect of the operation of a mine or quarry or of any other exploitation of natural resources.

3. Royalties for using, or for the right to use, in' one of the contracting States, copyrights, patents, designs, secret processes and formulae, trade-marks or other like property as well as motion picture films and industrial, commercial, or scientific equipment shall be treated as income from sources within that contracting State.

4. The amount of tax imposed by one of the contracting States on the income derived from sources within that contracting State from the sale of any patent, design, secret process and formula, trade-mark or other industrial invention as well as motion picture films (excluding such films as to which payment of royalty is inconceivable) by a resident or corporation of the other contracting State, not having a permanent establishment situated in the former contracting State, shall not exceed 15 percent of the gross amount received.

5. Income derived from the sale of the property mentioned in the preceding paragraph shall be treated as income from sources within that contracting State in which such property is to be used.

1. The amount of tax imposed by one of the contracting States on dividends paid by a corporation of that contracting State to a resident or corporation of the other contracting State, not having a permanent establishment situated in the former contracting State, shall not exceed 15 percent of the amount of such dividends.

2. Dividends paid by a Japanese corporation to a Swedish corporation shall be exempt from Swedish tax; provided that in accordance with the laws of Sweden the dividends would be exempt from tax if both. corporations had been Swedish corporations.