AMSC Files Criminal/Civil Case in China Alleging Wind Turbine IP Theft
American Superconductor Corporation (AMSC) announced on September 14, 2011 that it is filing criminal and civil complaints in China against Sinovel Wind Group Co., Ltd. and other parties alleging the illegal use of AMSC's intellectual property. Based in part upon evidence obtained through AMSC and law enforcement investigations, AMSC believes that Sinovel illegally obtained and used AMSC's intellectual property to upgrade its 1.5 megawatt wind turbines in the field to meet proposed Chinese grid codes and to potentially allow for the use of core electrical components from other manufacturers.
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Seeks end to infringement, monetary damages. AMSC states it is seeking to compel Sinovel and the other parties to cease and desist from infringing its intellectual property as well as monetary damages to compensate AMSC for its economic losses resulting from the infringement. AMSC also has filed a claim for arbitration to compel Sinovel to pay AMSC for past product shipments and to accept all contracted but not yet delivered core electrical components and spare parts under all existing contracts with AMSC.
Case filed with Beijing Arbitration Commission. The arbitration claim was filed with the Beijing Arbitration Commission in accordance with the terms of AMSC's supply contracts with Sinovel. Additional information about the legal actions is contained in the Current Report on Form 8-K that AMSC is filing with the U.S. Securities and Exchange Commission. AMSC is now operating its business based on the assumption that Sinovel will not be a customer.