Sinovel warns of "unpredictable" impact of AMSC litigation

CHINA: Sinovel has said that it is "unable to predict" the likely impact on its profits from its legal battles with AMSC.

Sinovel is fighting cases in the US and China

In the Chinese manufacturer's interim results it said that it was unable "make a judgement" on how much that a loss of any of the cases could have on the company's performance "in the preceding half year and the future."

Sinovel has been caught up in legal battles with American firm AMSC in both the US and China. The issues stem from Sinovel's alleged theft of intellectual property relating to turbine control codes that AMSC had originally supplied to Sinovel, and AMSC order consignments that were turned back.

AMSC has questioned whether the cases are being taken seriously by the Chinese authorities. In February, the Supreme People's Court decided in favour of AMSC in February and finding that the copyright infringement cases should be heard separately from the commercial arbitration claims. However, there has been little sign of the cases progressing.

The legal wranglings began in 2011, when AMSC filed a case in China. This has since escalated, with the American firm pursuing Sinovel for $1.2 billion in China and $800 million in the US.

In July, the criminal case in the US took a step forward after a judge ruled that it can progress through the courts. US magistrate judge Stephen Crocker said in his ruling that Sinovel's attempt to present its subsidiary, Sinovel USA, as responsible for its activities in the country was unfounded.

Sinovel along with two of its employees and a former-employee of an AMSC subsidiary have been charged with the theft of trade secrets.