Chinese wind turbine company convicted of IP theft
A Chinese wind turbine company has been convicted over the theft of trade secrets from an American company.
Sinovel Wind Group was convicted of conspiracy to commit trade secret theft, theft of trade secrets and wire fraud following an 11-day trial in Wisconsin.
The news was announced yesterday, January 24, by acting assistant attorney general John Cronan of the Department of Justice’s criminal division, and attorney Scott Blader of the US District Court for the Western District of Wisconsin.
The victim company was AMSC, a wind turbine technology and system company.
“Sinovel nearly destroyed an American company by stealing its IP,” commented Cronan, adding that the verdict demonstrated that IP theft is a crime that won’t be tolerated.
“The department is dedicated to helping foster innovation and growth in our economy by deterring and punishing IP theft from American companies,” he concluded.
The stolen technology was software that regulates the flow of electricity from wind turbines to electrical grids.
When the theft occurred in March 2011, Sinovel had contracted with AMSC for more than $800 million in products and services that were to be used in the wind turbines that Sinovel manufactured, sold and serviced.
Alongside Sinovel, the deputy director of Sinovel’s research and development team, a technology manager for Sinovel and a former employee of AMSC Windtech (a subsidiary of AMSC) were also sentenced.
The evidence presented at trial showed that Sinovel had conspired with the other defendants to obtain AMSC’s copyrighted information and trade secrets to produce wind turbines, without paying AMSC the money it was owed.
Following the theft, AMSC suffered severe financial hardship, lost more than $1 billion in shareholder equity and lost almost 700 jobs, according to the press release.
The defendants are due to be sentenced on June 4.
Blader added that the verdict sends a message that people found guilty of IP theft will be prosecuted.
“I commend the efforts of the investigation and prosecution team, and reaffirm the commitment of this office to protect American commerce and prosecute those who would seek to steal IP,” he said.
As reported by WIPR, a Chinese national was sentenced on January 18 to five years in prison for the theft of trade secrets from an unnamed US company.
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