China's Supreme People's Court Decides In Favor Of AMSC On Jurisdictional Matters

DEVENS, Mass., Feb. 19, 2014 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC), a global solutions provider serving wind and power grid industry leaders, today announced that China's Supreme People's Court has decided in favor of AMSC on the jurisdiction of AMSC's two software copyright infringement cases against Sinovel Wind Group, Ltd. (Sinovel) and Guotong Electric (Guotong). The Supreme People's Court ruled that the cases will be heard as copyright infringement cases separate from the commercial arbitration claims. The cases will be heard independently in their respective court systems.

These are two of the four legal cases that AMSC brought against Sinovel in late 2011 regarding Sinovel's contractual breaches and AMSC's discovery of intellectual property theft by Sinovel. AMSC is also engaged in a commercial arbitration case and a trade secrets case against Sinovel in China.

Background on Beijing Civil Case

In September 2011, AMSC filed a civil action with the Beijing No. 1 Intermediate People's Court that alleges Sinovel's unauthorized copying and use of portions of AMSC's wind turbine control software developed for Sinovel's 1.5 MW wind turbines and the binary code, or upper layer, of AMSC's software for its PM3000 power converters. In this case, AMSC is seeking a cease and desist order and damages totaling US$6 million. In November 2011, Sinovel filed a motion to remove this case from the Beijing No. 1 Intermediate People's Court and transfer the matter to the Beijing Arbitration Commission. The court denied Sinovel's motion to remove the case. Sinovel filed an appeal of that decision to the Beijing Higher People's Court, and the Beijing Higher People's Court supported the Beijing No. 1 Intermediate People's Court's ruling and rejected Sinovel's appeal. Sinovel then filed an appeal of that decision with China's Supreme People's Court. The Supreme People's Court has ruled to uphold the Beijing Higher People's Court ruling that the dispute shall be heard by the court. AMSC will now await a hearing date from the Beijing No. 1 Intermediate People's Court.

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