The Man Who Stole the Wind: The Betrayal Cycle of AMSC and Synobel (2008-2011)

The Man Who Stole the Wind: The Betrayal Cycle of AMSC and Synobel (2008-2011)

AMSC was known for developing control software and electronics, the heart of wind turbines, and was expanding internationally through its Austrian subsidiary Windtec. Its largest customer for its technology, Chinese wind power giant Sinovel (Sinovel Wind Group), was responsible for about half of AMSC's sales. However, this relationship of trust was soundly shattered by a betrayal by one of its engineers.

Dejan Karabasevic, a Serbian national, worked for AMSC's Austrian subsidiary, designing and developing the software at the heart of the wind control system. His position gave him unfettered access to the most sensitive source code and algorithms, knowledge that was a veritable lifeline for the company. However, after 2010, Karabasevich began to change under the surface.

He is approached by Sinovel and decides to illegally take the central code of AMSC's control software in exchange for a large reward and a position in China. After submitting his resignation, he uses his home PC and USB device to duplicate a vast amount of confidential code during his tenure, which he then sends to China. This act shook the very foundations of AMSC. During his interrogation, he said, "It was not a betrayal. He reportedly stated, "It was not a betrayal, I just cooperated with someone who valued me more fairly. He also said that AMSC had disregarded his talent. It is clear that personal frustration and vengeance were behind the international corporate espionage case.

In March 2011, Sinovel abruptly canceled all orders; AMSC suffered a severe drop in sales, and in April its stock price dropped 42% overnight. The total damage was estimated to be about $800 million (about 64 billion yen), resulting in massive layoffs and shaking the company's very foundations.

This betrayal was not limited to the theft of technology. Immediately after the incident, Sinovel cleverly utilized social networking services and technology forums in China and abroad to spread a series of posts claiming that the technology was the result of its own development, and manipulated information to give the impression that AMSC was the "loser" that failed to win the contract, causing confusion in international public opinion. These information tactics had the effect of diluting Sinovel's bad reputation and further damaging AMSC's credibility.

Karabasevich was arrested in Austria and sentenced to one year of suspended imprisonment and a fine in 2011; AMSC filed lawsuits against Sinovel in China and the U.S., and the U.S. Department of Justice indicted Sinovel and its executives for industrial espionage in 2013, but China has refused to extradite those involved, leaving justice in limbo ...

The case was a symbolic act that shows how a lack of personal emotion and ethics can lead to the downfall of entire companies in the global technology marketplace. At the same time, it was a sharp reminder of the vulnerability of corporations in the age of social networking and the reality of information warfare across nations. This story of a company that supposedly gave birth to technology to control the wind, only to be betrayed like the wind and hunted down by rumors, remains a prelude to the modern intellectual property wars.