American Superconductor Corporation has announced that it is taking a series of legal actions against Sinovel Wind Group Co. Ltd. (Sinovel).
AMSC is filing criminal and civil complaints in China against Sinovel and other parties alleging the illegal use of AMSC’s intellectual property. These cases follow an intensive investigation conducted by both AMSC and law enforcement. Based in part upon evidence obtained through the 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.
AMSC is seeking to compel Sinovel and the other parties to cease and desist from infringing its intellectual property and is also seeking 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 the Company. 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 US Securities and Exchange Commission. AMSC is now operating its business based on the assumption that Sinovel will not be a customer.
“We are taking legal action against Sinovel based on its contractual breaches and strong evidence of its criminal misconduct,” said AMSC President and Chief Executive Officer Daniel McGahn. “These actions send a clear message that AMSC is enforcing its intellectual property and commercial contracts.”
