Chinese Arbitration Authority Deals with American Superconductor's Contractual Dispute

Sinovel, the world's second-largest wind turbine maker, and the American Superconductor Corporation (AMSC) have separately expressed confidence in winning a contractual dispute that is being mediated by Chinese authorities.

Sinovel and AMSC, a global solutions provider serving wind and grid leaders, respectively confirmed on Feb. 29 that the Beijing Arbitration Commission opened a court session last Friday to hear a contractual arbitration between Sinovel and AMSC.

Although a final verdict has yet to be reached, Sinovel is optimistic about the final outcome.

"The core of the arbitration lies in whether the goods supplied by AMSC have quality problems and whether they meet the standards stipulated in the contracts. We have evidence showing the goods do not meet the contractual standards," said Tao Gang, Sinovel's vice president.

AMSC Vice President Jason Fredette responded, saying "we are pushing forward with our arbitration and civil cases in China as we seek fair compensation for the contracts that our former customer has broken and the intellectual property they have stolen."

"Arbitration proceedings are now underway, and we expect our copyright and trade secret cases to be heard later this year. We have gotten assurance from the Chinese government that this will be a fair process, and we continue to expect that the actions we are taking will lead to a favorable outcome for our company," Fredette said.

Legal sources say that such a case would normally last for several months, as it involves large-sum compensation and multiple legal disputes relating to many contracts and projects.

This is the second case in a series of legal maneuvers AMSC has taken against Sinovel concerning intellectual property infringement.

Source: Xinhua