AMSC takes Sinovel case to Beijing High Court

CHINA: Wind turbine component manufacturer AMSC is suing Sinovel for $400 million through Beijing's High People's Court for infringing its intellectual property rights.

The move by the troubled US company is the latest in a series of legal actions the two companies have taken against each other. AMSC said the Beijing High Court has accepted the case.

However in response, Sinovel said it has not yet received official notice of the action.

In late October, AMSC submitted a case to the Beijing First Intermediate People's Court, alleging copyright infringement by Sinovel.

It claimed that Sinovel, copied, installed, and applied illegally revised PLC electronic control software and PM3000 frequency converter software on wind turbines.

AMSC demanded Sinovel instantly stops the acts of infringing wind turbine software copyrights, deletes or destroys all infringed AMSC software on Sinovel turbines, and compensates AMSC for an economic loss of CNY37.8 million ($6 million).

From May 2008 to January 2011, AMSC and Sinovel signed eight purchasing contracts, under which AMSC would supply Sinovel with electronic control components for Sinovel to produce SL1500 and SL3000 wind turbines.

Sinovel was once AMSC’s biggest client, accounting for more than 70 per cent of the company’s revenues last year.

In April, Sinovel refused shipment of AMSC components, alleging AMSC’s products and services failed to meet contractual demands.

In early October, Sinovel filed a counterclaim to Beijing Arbitration Commission requesting the arbitration tribunal to reject all the arbitration claims made by AMSC and rule AMSC to compensate Sinovel CNY 79.9 million ($12 million) for economic losses from breach of contract.


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