AMSC Seeks to Recover More Than USD 1.2 Billion from Sinovel (China)

February 15, 2012

AMSC, a global solutions provider serving wind and grid leaders, today provided an update regarding its legal actions in China. As previously reported, AMSC has filed for arbitration and has filed three civil lawsuits in the Chinese courts against Sinovel Wind Group Co., Ltd. (Sinovel) and companies related to Sinovel.

In total, AMSC is seeking to recover more than $1.2 billion for contracted shipments and damages from Sinovel in these cases, which stem from Sinovel’s contractual breaches in March 2011 and AMSC’s discovery of intellectual property theft by Sinovel employees in June 2011.

Among the cases is a civil action against Sinovel for software copyright infringement that has been filed with the Beijing No. 1 Intermediate People’s Court. The case alleges Sinovel’s unauthorized use of portions of the AMSC’s wind turbine control software source code developed for Sinovel’s 1.5 MW wind turbines and the binary code, or upper layer, of AMSC’s software for its PM3000 power converters. AMSC is seeking a cease and desist order and damages totaling $6 million in this case.

In November 2011, Sinovel filed a motion to remove this case from the Beijing No. 1 Intermediate People’s Court and transfer the matter to the Beijing Arbitration Commission. On February 14, 2012, the court denied Sinovel’s motion to remove the case.

AMSC generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner … better energy. Through its Windtec™ Solutions, AMSC enables manufacturers to launch best-in-class wind turbines quickly, effectively and profitably. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. The company’s solutions are now powering gigawatts of renewable energy globally and enhancing the performance and reliability of power networks in more than a dozen countries.

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Offshore WIND staff, February 15, 2012; Image: sinovel