US Westinghouse Claims Intellectual Property Infringement
May Aim to Increase Value and Secure Contracts
South Korea opened a new chapter in the nuclear power industry by being selected as the preferred negotiation partner for the Czech Republic's nuclear power plant construction project last July. However, negotiations have been stalled as the American company Westinghouse has claimed intellectual property infringement. Westinghouse argues that the Korean reactor technology is based on its proprietary technology and has expressed strong opposition. How will this situation affect the export of nuclear power plants to the Czech Republic?
Westinghouse has played a significant role in the global power industry and the development of nuclear technology. The company sided with Tesla during the AC/DC war and continued to achieve important innovations in power and nuclear technology. Notably, it established itself as a leader in nuclear technology by supplying the first nuclear submarine reactor in the U.S. in 1954 and developing the pressurized water reactor in 1957.
South Korea also began independently developing Korean-type reactors in the 1980s by signing a technology transfer agreement with CE (Combustion Engineering). Based on CE's 'System 80,' Korea developed reactors called OPR 1000 and APR 1400. The APR 1400 was introduced at the UAE Barakah nuclear power plant, proving the international competitiveness of Korean nuclear technology. During this process, Korea localized core reactor technologies.
CE later faced financial difficulties and was acquired by Europe's ABB, becoming ABB-CE, and this company was subsequently acquired by Westinghouse. Ultimately, Westinghouse came to own CE's proprietary technology.
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Based on this, Westinghouse claimed that the Korean-type reactor infringes on its intellectual property rights and sent a protest letter to the Czech government. The Korean side refutes this, asserting independent technological development, but Westinghouse continues to emphasize ownership of the proprietary technology.
The problem does not end there. Approval from the U.S. government is also required for exporting nuclear power plants to the Czech Republic. According to the regulations of the Nuclear Suppliers Group (NSG), established in 1977, approval from the country owning the proprietary technology is essential when exporting nuclear technology. The Czech Republic, having a nuclear agreement with the U.S., can export upon notification, but the notifying party is Westinghouse. If Westinghouse does not submit the notification, export is impossible.
Westinghouse's opposition to Korea's nuclear power plant exports is rooted in its business strategy. As a private equity-owned company, Westinghouse is leveraging negotiation leverage to increase its valuation and is also believed to intend securing some contracts. During the Barakah nuclear power plant contract, Westinghouse also secured some work packages.
The Czech government was already aware of Westinghouse's opposition. Nevertheless, selecting Korea as the preferred negotiation partner demonstrates trust in Korean nuclear technology. However, if the intellectual property dispute with Westinghouse is not resolved, the negotiation process could take longer than expected.
The core of this dispute lies in intellectual property rights and U.S. government approval. Korea emphasizes independent technology development, but Westinghouse firmly asserts intellectual property rights based on proprietary technology. The outcome of future negotiations is expected to be a crucial variable determining the success or failure of Korea's nuclear power plant exports.
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