09 December 2016

Intellectual Property: General Electric v. Siemens

Siemens alleges General Electric is trying to steal its intellectual property with plans to buy on the sly a decommissioned gas turbine from Contact Energy.
The Court of Appeal upheld an interim injunction blocking the sale pending a full trial on Siemens’ claims it could veto any sale to a competitor.  Siemens provided gas turbines for Contact’s Otahuhu B combined cycle power station.  Contact has closed the plant.
The Court of Appeal was told Siemens provided Contact with a letter of support to assist in the gas turbines onward sale, expecting the units to be offered to other power generators.  There was evidence of Contact keeping General Electric’s interest hidden, describing GE personnel on scoping visits as “mystery shoppers”.
Siemens claims intellectual property rights in its gas turbines, particularly in the metallurgy and fit of burners, blades and heat-resistant coatings.  General Electric admits it plans to disassemble Siemens’ turbine on order to get information useful for its plans to compete in the market for maintenance contracts.  Siemens’ alleges this will allow General Electric to reverse-engineer the turbine and acquire trade secrets. 
General Electric v. Siemens – Court of Appeal (9.12.16)

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