US hits Chinese firm Sinovel with US$1.5 million fine for stealing technology
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| US prosecutors said that China's Sinovel used technology stolen from AMSC, a US-based company formerly known as American Superconductor, to produce its own wind turbines and retrofit existing turbines. (Photo: AFP/Charly Triballeau) |
The decision comes on the day Washington unleashed 25 per cent import tariffs on US$34 billion in Chinese products to punish the country for what President Donald Trump has said is the rampant theft of American technology.
After being charged in 2013, Sinovel was convicted in January by a US court of stealing the trade secrets of AMSC, a US-based company formerly known as American Superconductor, which lost US$550 million and 700 jobs - more than half its global workforce - as a result, the Justice Department said in a statement.
The two companies this week reached a settlement and Sinovel has one year to pay US$25 million to AMSC, after paying US$32.5 million this week. The Chinese firm also will repay US$850,000 to other victims.
"Rather than pay AMSC for more than US$800 million in products and services it had agreed to purchase, Sinovel instead hatched a scheme to brazenly steal AMSC's proprietary wind turbine technology, causing the loss of almost 700 jobs and more than $1 billion in shareholder equity at AMSC," acting Assistant Attorney General John Cronan said in statement.
"As demonstrated by this prosecution, intellectual property theft poses a serious threat to American companies."
Sinovel used the stolen technology, including software, to regulate the flow of power from turbines to electrical grids, to produce its own wind turbines and retrofit existing turbines, prosecutors said.
The company also hired away an AMSC engineer to help steal source code for the key software in 2011, the statement said.
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