Chinese crane maker used US trade secrets, ITC rules

The US International Trade Commission (ITC) has ruled that Chinese crane manufacturer Sany Heavy Industries infringed patents and trade secrets belonging to a rival US company.

According to an initial notice published by the ITC, Sany violated two patents belonging to The Manitowoc Company and was also able to develop its own products by using the company’s trade secrets.

The complaint, initially filed by Manitowoc in June last year, centred on US patent numbers 7,546,928 ('928) and 7,967,158, which related to a “variable counterweight system” to help with the manoeuvre of cranes.

Manitowoc’s complaint alleged that Sany was able to design the cranes after details were passed on by a former employee. It then imported and sold the designs in the US, rivalling the service offered by Manitowoc.

The ITC’s notice agreed and said Wisconsin-based Manitowoc had proved that “certain accused products infringe claims of the ‘928 patent,” and that Sany also engaged in the “misappropriation of certain asserted trade secrets”.

Based in Changsha in Hunan Province, Sany also has manufacturing offices in the US, Germany and India.

In a statement published yesterday (July 22), Manitowoc said it was pleased by the ruling and looked forward to receiving the ITC’s final order, which is expected to be published later this year.

“The notice issued by the judge released only limited information. The company will provide additional information once the public version of the Final Initial Determination is issued,” it added.

The case is similar to another ITC case involving Chinese company TianRui (TianRui Group Co v ITC).

TianRui was accused of using trade secrets belonging to US company Amsted Industries, which had factories in China, for railway wheels. The wheels were subsequently imported and used in the US.

The ITC also found TianRui guilty of trade secret misappropriation.

Sany did not respond immediately to a request to comment.