American nuclear power company Westinghouse has decided to continue its legal dispute with Korea Hydro & Nuclear Power (KHNP). The company filed a lawsuit in a U.S. court to block KHNP's independent nuclear power export but received a dismissal and has decided to appeal.
On the 19th (local time), Westinghouse announced in a statement that it would appeal the dismissal ruling made the previous day by the U.S. Federal District Court in Washington, D.C.
David Durham, President of Westinghouse Energy Systems, said, "The U.S. federal court's ruling merely determined that the authority to enforce export controls lies with the U.S. government," adding, "Westinghouse intends to appeal the ruling." He stated, "The main point of dispute between the parties is the use of Westinghouse's intellectual property outside of Korea," and claimed, "This ruling has no impact on the arbitration proceedings we are conducting against Korea Electric Power Corporation (KEPCO) and KHNP regarding the unauthorized transfer of Westinghouse's intellectual property outside Korea." He further added, "The arbitration panel has confirmed that a final decision is not expected until late 2025."
Durham explained, "The dispute between KEPCO, KHNP, and Westinghouse spans multiple jurisdictions and involves two key issues: one is compliance with U.S. nuclear technology export control requirements, and the other concerns KEPCO and KHNP's obligation to respect our intellectual property rights as agreed in the contract with Westinghouse." He emphasized, "Westinghouse is committed to protecting our intellectual property and fully expects to prevail on all issues in the arbitration."
Last October, Westinghouse claimed that the Korean-designed nuclear reactor APR-1400, which KHNP plans to export to Europe, including Poland and the Czech Republic, utilizes its technology subject to export controls under the U.S. Atomic Energy Act. The company filed a lawsuit seeking to prevent exports without U.S. government approval. However, the court ruled the previous day that the authority to enforce export controls rests with the U.S. government and that Westinghouse, as a private company, lacks standing to file the lawsuit, resulting in dismissal.
This ruling removed a significant obstacle to South Korea's nuclear power exports and was seen as a positive signal for the government's goal of exporting 10 nuclear reactors by 2027. Had the U.S. court accepted Westinghouse's claims, KHNP and KEPCO would have needed approval from both the U.S. government and Westinghouse for every future nuclear export.
The fact that the U.S. court did not make a judgment on the core issue of which party holds the intellectual property rights to the Korean nuclear technology could become a variable in this dispute. Some expect that the dispute may be resolved through arbitration. Currently, the Korean Commercial Arbitration Board is conducting international arbitration proceedings related to the dispute between KHNP and Westinghouse. Additionally, there are calls for KHNP, KEPCO, and Westinghouse to continue negotiations while actively engaging negotiation channels between the South Korean and U.S. governments. It is argued that government-level negotiations are necessary to resolve the dispute and achieve a win-win outcome for both sides.
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