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AMSC Provides Litigation Update

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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.

The smallest of the civil cases is a copyright infringement complaint filed with the Hainan Province Number 1 Intermediate People’s Court case against Sinovel and Dalian Guotong Electric Co. Ltd (Guotong), a company related to Sinovel. Guotong is a supplier of power converter products to Sinovel. AMSC has compiled and presented to the Hainan court evidence demonstrating that its copyrighted software is being infringed by Sinovel and Guotong. AMSC is seeking a cease and desist order and damages totaling approximately $200,000 in this case.

In December 2011, Sinovel filed a jurisdiction opposition motion requesting its dismissal by the Hainan Province No. 1 Intermediate People’s Court, saying the case should be governed by the Beijing Arbitration Commission. On February 3, 2012, AMSC received the Civil Ruling from the court, which granted Sinovel’s motion and dismissed the entire case.

“We are starting to see motion from the Chinese courts, and proceedings are getting underway as expected,” said AMSC President and Chief Executive Officer Daniel P. McGahn. “The Hainan court’s dismissal of our smallest case is not altogether unexpected, and we are appealing the ruling. We continue to have confidence in all of our cases and expect that our legal actions will yield a positive outcome.”

Business | News published on 06 / 02 / 2012 by Andrew Callaway

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