The Manitowoc Company Prevails in Patent Infringement and Trade Secret Misappropriation Lawsuit Against Sany
October 14 2016 - 11:50AM
Business Wire
The Competitive Differentiation of Manitowoc’s
Variable Position Counterweight (VPC) Technology is Confirmed
The Manitowoc Company, Inc. (NYSE: MTW) today announced the U.S.
Court of Appeals for the Federal Circuit (“CAFC”) ruled in its
favor in its patent infringement and trade secrets misappropriation
lawsuit against Sany Heavy Industries and Sany America
(collectively “Sany”). The CAFC’s October 11, 2016 ruling summarily
affirmed the United States International Trade Commission (“ITC”)
April 16, 2015 Final Determination and Cease and Desist Order
against Sany in Certain Crawler Cranes and Components (Inv. No.
337-TA-887). The CAFC specifically noted that no further opinion
was necessary.
“Manitowoc is extremely pleased with the CAFC’s ruling which
also affirms the ITC’s decision. Aggressively protecting our
proprietary intellectual property creates value for our customers,
shareholders and employees. Innovation drives Manitowoc’s product
strategy. Our Variable Position Counterweight (VPC) technology is
just one example of our ongoing commitment to being an industry
leader,” commented Barry L Pennypacker, president and chief
executive officer of The Manitowoc Company, Inc.
The CAFC’s October 11, 2016 ruling upholds all of the
determinations from the ITC’s April 16, 2015 Final Determination.
The Final Determination was issued in connection with the ITC’s
investigation of Sany’s conduct based upon a complaint filed by
Manitowoc Cranes, LLC, which alleged that Sany had violated Section
337 of the Tariff Act. The ITC’s determinations included that at
least one Sany crane product infringed one of Manitowoc’s patents
and that six trade secrets of Manitowoc were both protectable as
trade secrets and misappropriated. As a result of those
determinations, the ITC issued a limited exclusion order that
prohibits importation into the U.S. by Sany of cranes (a) that
infringe one of Manitowoc’s patents or (b) that use any of six of
Manitowoc’s trade secrets for a period of ten years.
The ITC determinations which were upheld by the CAFC concluded,
“Sany actively encouraged misappropriation of Manitowoc’s trade
secrets and knew the trade secrets were acquired by improper
means.” Specifically, “Sany had reason to know that the Manitowoc
trade secrets were improperly obtained, specifically via a breach
in . . . confidentiality obligations” owed Manitowoc by its former
Vice President, John Lanning. After noting how Mr. Lanning
described Manitowoc’s “VPC technology as ‘game changing’ and urged
tight confidentiality,” the ITC found “that the details of the VPC
concept at Sany came directly from Mr. Lanning,” who “Sany hired
for [his] expertise.”
In addition to the exclusion order, the ITC issued a cease and
desist order that prohibits Sany America from importing, selling,
marketing, advertising, or distributing cranes that were
manufactured using any of the six Manitowoc trade secrets found to
be misappropriated.
About The Manitowoc Company, Inc
Founded in 1902, The Manitowoc Company, Inc. is a leading global
manufacturer of cranes and lift solutions with manufacturing,
distribution, and service facilities in 20 countries. Manitowoc is
recognized as one of the premier innovators and providers of
crawler cranes, tower cranes, and mobile cranes for the heavy
construction industry, which are complemented by a slate of
industry-leading aftermarket product support services. In 2015,
Manitowoc’s revenues totaled $1.9 billion, with over half of these
revenues generated outside the United States.
Forward Looking Statements
This press release includes "forward-looking statements"
intended to qualify for the safe harbor from liability under the
Private Securities Litigation Reform Act of 1995. Any statements
contained in this press release that are not historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
based on the current expectations of the management of the company
and are subject to uncertainty and changes in circumstances.
Forward-looking statements include, without limitation, statements
typically containing words such as "intends," "expects,"
"anticipates," "targets," "estimates," and words of similar import.
By their nature, forward-looking statements are not guarantees of
future performance or results and involve risks and uncertainties
because they relate to events and depend on circumstances that will
occur in the future. There are a number of factors that could cause
actual results and developments to differ materially from those
expressed or implied by such forward-looking statements. Factors
that could cause actual results and developments to differ
materially include, among others:
- unanticipated changes in revenues,
margins, costs, and capital expenditures;
- the ability to significantly improve
profitability;
- the ability to direct resources to
those areas that will deliver the highest returns;
- uncertainties associated with new
product introductions, the successful development and market
acceptance of new and innovative products that drive growth;
- the ability to focus on the customer,
new technologies, and innovation;
- the ability to focus and capitalize on
product quality and reliability;
- the ability to increase operational
efficiencies across Manitowoc’s business segment and to capitalize
on those efficiencies;
- the ability to capitalize on key
strategic opportunities and the ability to implement Manitowoc’s
long-term initiatives;
- the ability to generate cash and manage
working capital consistent with Manitowoc’s stated goals;
- the ability to convert order and order
activity into sales and the timing of those sales;
- pressure of financing leverage;
- matters impacting the successful and
timely implementation of ERP systems;
- foreign currency fluctuations and their
impact on reported results and hedges in place with Manitowoc;
- changes in raw material and commodity
prices;
- unexpected issues associated with the
quality of materials and components sourced from third parties and
the resolution of those issues;
- unexpected issues associated with the
availability and viability of suppliers;
- the risks associated with growth;
- geographic factors and political and
economic conditions and risks;
- actions of competitors;
- changes in economic or industry
conditions generally or in the markets served by Manitowoc;
- unanticipated changes in customer
demand, including changes in global demand for high-capacity
lifting equipment; changes in demand for lifting equipment in
emerging economies, and changes in demand for used lifting
equipment;
- global expansion of customers;
- the replacement cycle of
technologically obsolete cranes;
- the ability of Manitowoc's customers to
receive financing;
- efficiencies and capacity utilization
of facilities;
- issues relating to the ability to
timely and effectively execute on manufacturing strategies,
including issues relating to new plant start-ups, plant closings,
and/or consolidations of existing facilities and operations;
- issues related to workforce reductions
and subsequent rehiring;
- work stoppages, labor negotiations,
labor rates, and temporary labor costs;
- government approval and funding of
projects and the effect of government-related issues or
developments;
- the ability to complete and
appropriately integrate restructurings, consolidations,
acquisitions, divestitures, strategic alliances, joint ventures,
and other strategic alternatives;
- realization of anticipated earnings
enhancements, cost savings, strategic options and other synergies,
and the anticipated timing to realize those savings, synergies, and
options;
- unanticipated issues affecting the
effective tax rate for the year;
- unanticipated changes in the capital
and financial markets;
- risks related to actions of activist
shareholders;
- changes in laws throughout the
world;
- natural disasters disrupting commerce
in one or more regions of the world;
- risks associated with data security and
technological systems and protections;
- acts of terrorism; and
- risks and other factors cited in
Manitowoc's filings with the United States Securities and Exchange
Commission.
Manitowoc undertakes no obligation to update or revise
forward-looking statements, whether as a result of new information,
future events, or otherwise. Forward-looking statements only speak
as of the date on which they are made. Information on the potential
factors that could affect the company's actual results of
operations is included in its filings with the Securities and
Exchange Commission, including but not limited to its Annual Report
on Form 10-K for the fiscal year ended December 31, 2015.
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The Manitowoc Company, Inc.Ion WarnerVP, Marketing and Investor
Relations717-593-5266
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