AMSC Submits Appeal to China's Supreme People's Court

Press Release
Tuesday, April 10, 2012

DEVENS, Mass. – AMSC, a global solutions company serving wind and grid leaders, announced that it has filed an appeal with China's Supreme People's Court relating to the Hainan Higher Court's decision on April 5, 2012, to uphold the Hainan Province No. 1 Intermediate People's Court's dismissal of AMSC's civil case against Sinovel Wind Group Co. Ltd. (Sinovel) and Dalian Guotong Electric Co. Ltd. (Guotong).

This is the smallest of four legal actions AMSC has brought against Sinovel. In total, AMSC is seeking to recover from Sinovel more than $1.2 billion for contracted shipments and damages in these cases, which stem from Sinovel's contractual breaches and AMSC's discovery of intellectual property theft by Sinovel employees.

In September, 2011, AMSC filed a copyright infringement lawsuit with the Hainan Province No. 1 Intermediate People's Court against Sinovel and Guotong. AMSC is seeking a cease and desist order, as well as damages totaling approximately $200,000, making this the smallest of AMSC's legal actions against Sinovel.

Sinovel filed a jurisdiction opposition motion in December, 2011, requesting that the Hainan Province No. 1 Intermediate People's Court dismiss AMSC's case against Sinovel, contending that the case should be governed by the Beijing Arbitration Commission, pursuant to the terms of component contracts between AMSC and Sinovel. Not only did the court grant Sinovel's motion; it dismissed the cases against both Sinovel and Guotong. AMSC appealed the dismissal to the Hainan Higher Court, which on April 5, 2012, upheld the decision of the Hainan Province No. 1 Intermediate People's Court.

"We applaud the Beijing No. 1 Intermediate People's Court's decision and are disappointed that the Hainan courts have made inconsistent and, we strongly believe, improper rulings," said AMSC Vice President and General Counsel John Powell. "While this case means little to us from a monetary perspective, we will continue to seek justice through the Chinese courts on this matter of global importance."

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