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TheStreet Open House

China's Sinovel Indicted In The United States For Stealing AMSC Trade Secrets

AMSC Calls for Re-Evaluation of Trade Relationship With China

Chinese Company's Actions Led to Loss of More Than 500 AMSC Jobs

AMSC Hails Department of Justice for Working to Bring Sinovel to Justice

DEVENS, Mass., June 27, 2013 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC) today requested that the Obama administration and Congress re-evaluate the U.S. trade relationship with China in conjunction with the Department of Justice (DoJ) indictment of Sinovel and two of its employees for the theft of AMSC's trade secrets. Following an investigation by the Federal Bureau of Investigation (FBI), the DoJ today charged Sinovel and two of its employees with the theft of Massachusetts-based AMSC's proprietary software code and the use of that intellectual property in four 1.5 MW Sinovel turbines that have been installed in the Massachusetts towns of Charlestown, Fairhaven, and Scituate. Those parties and their contractors are not implicated in any way. The DoJ's press release can be found on its website.

"We have worked with law enforcement to verify that these Sinovel-manufactured wind turbines contain AMSC's stolen intellectual property," said Daniel P. McGahn, AMSC's President and CEO. "The fact that Sinovel has exported stolen American intellectual property from China back into the United States – less than 40 miles from our global headquarters – shows not only a blatant disrespect for intellectual property but a disregard for international trade law. These criminal acts have led to significant financial harm to AMSC, its employees and their families as well as its shareholders. Over the past two years, more than 500 staff members worldwide have lost their jobs following Sinovel's egregious and unlawful behavior."

In September 2011, AMSC filed four legal actions against Sinovel in China alleging the illegal use of AMSC's intellectual property and seeking more than $1 billion in deliveries and damages. At that time, AMSC also requested that Chinese police bring criminal action against Sinovel and some of Sinovel's employees. Nearly two years later, we believe that the Chinese police have yet to undertake an investigation and China's civil courts have yet to begin substantive hearings of AMSC's cases.

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