American Superconductor Corp (AMSC) has started civil and criminal legal actions against China’s largest wind turbine manufacturer over alleged software theft.
The US company believes that Sinovel illegally obtained and used AMSC’s intellectual property and is seeking monetary damages for “economic losses resulting from the infringement”. The legal actions come after months of dispute between the two companies.
AMSC, which supplies components and systems for wind turbines, alleges that Sinovel illegally used its software to upgrade its 1.5 MW wind turbines in the field to meet proposed Chinese grid codes and to potentially allow the use of core electrical components from other manufacturers. AMSC has also filed a claim to compel Sinovel to pay it for past product shipments and to accept all contracted components that have not yet been delivered.
AMSC says it is now owed around $250 million.
“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.”
AMSC’s share price has tumbled by 70 per cent in the last six months. Sinovel was its biggest client, accounting for around 75 per cent of its sales.
Sinovel could not be reached for comment.
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