Power-tech firm says it’s victim of espionage
“Based on suspicions that were raised in mid-June, we began working closely with law enforcement,’’ chief executive Daniel McGahn said yesterday. “Have no doubt: We are determined to protect our intellectual property and the interests of our shareholders.’’
The former American Superconductor employee, who as not named in the documents, was arrested in Austria in July and charged with economic espionage. He is awaiting trial, the company said. The former staffer stole software source code used to control wind turbines and passed it to Sinovel, the company said. Sinovel could not be reached for comment.
Earlier this year, American Superconductor cut its workforce by 30 percent, or 150 jobs, citing contract issues with Sinovel. The Chinese wind turbine maker refused to accept shipments for which it had contracted, amid talk that it was shifting its business to another supplier.
American Superconductor, which supplies technology and equipment to the power industry, has said that Sinovel accounts for a significant portion of its revenue.
Earlier this year, AMSC reported that it expected revenue for the first quarter, which ended June 30, to be less than $10 million, compared to $97.2 million in the same quarter last year.
Yesterday, American Superconductor said that it would seek monetary damages from Sinovel.
“We are asking for an order requiring Sinovel to meet its contractual obligations,’’ McGahn said. “We are seeking full restitution. Namely, we are demanding that Sinovel either stops using our stolen intellectual property, or pays for it in full.’’
American Superconductor has been working with US and Chinese officials to document its allegations against Sinovel.
Senator John Kerry, who chairs the Senate Foreign Relations Committee, said yesterday that he was committed to helping American Superconductor work toward a “just resolution.’’
“When someone steals our intellectual property, they’re stealing Massachusetts jobs,’’ Kerry said in statement.
“President Obama has tried relentlessly to convince China to crack down, but this case shows that some Chinese firms still haven’t gotten the message.’’
American Superconductor’s stock fell the most in three months yesterday, down 15 percent to $6.01.
Erin Ailworth can be reached at eailworth [at] globe [dot] com.