After being threatened with a lawsuit over allegedly stolen technology, Sinovel, China's largest manufacturer of wind turbines, said Friday that its Brazilian client, Desenvix, had decided to drop the lawsuit.

In a statement sent to the Global Times Friday, Sinovel said Desenvix had claimed it would be dropping the legal action against Sinovel in a Brazilian court. The lawsuit was intended to order the Chinese company to prove that the wind turbines it had sold to Desenvix last year did not contain technology components from AMSC, a US manufacturer.

Desenvix said the frequency converter of the wind turbines provided by Sinovel for its Barra dos Coqueiros project had been shown to have originated from the hands of Emerson Electric Co, ruling out any technology from AMSC. 

Sinovel stated that it had independently developed its control system software and had not infringed on the rights of any third party, including AMSC.

AMSC is also embroiled in a complex set of legal actions with Sinovel.

AMSC has filed three separate civil suits against Sinovel over alleged copyright and trade secret infringement as well as a commercial arbitration case over a breach of supply contracts in Chinese courts, seeking a total of $1.2 billion in damages.

In September 2011, a court in Austria sentenced Dejan Karabasevic, a former AMSC employee to one year in jail and two years probation for having stolen wind turbine technology from AMSC. The court heard claims that Karabasevic passed the technology on to Sinovel. 

AMSC told the Global Times Thursday that based on overwhelming evidence, it was confident of winning the lawsuit.