The ICC International Court of Arbitration issued on 24 December 2009 the award rendered in the arbitration filed by Faiveley Transport Malmö against Wabtec Corporation with respect to the misappropriation by Wabtec of trade secrets on its brake components (tread brake units and disc actuators) and various breaches of contract under the terminated license agreement on such products.

The award confirms that Faiveley Transport has protectable and protected trade secrets in relation to the manufacture of the products, and that Wabtec has breached the license agreement and has misappropriated the Faiveley Transport trade secrets. Furthermore, the award confirms that Wabtec’s reverse engineering of parts of the products is tainted.

With this award :

- Wabtec is permanently enjoined from any use of Faiveley Transport’s manufacturing drawings and related documentation, with the exception of the limited use for the supply of products under contracts of Wabtec entered into force before the termination of the license agreement ;

- Faiveley Transport Malmö is awarded US$ 3.9M plus interest in damages ;

-Faiveley Transport right to royalties for sales from 2006 related to contracts signed before 2006 of products manufactured by use of  Faiveley Transport's drawings is confirmed.

The award also orders Wabtec to return all Faiveley Transport's manufacturing drawings and other documents transferred to Wabtec before or during the license agreement to the extent not needed for the supply of products under contracts of Wabtec entered into force before the termination of the license agreement.

Moreover, the award expressly recognizes the right of Faiveley entities other than Faiveley Transport Malmö to damages for Wabtec’s breaches of the license agreement and for the misappropriation of Faiveley Transport’s trade secrets. The Tribunal found that the damages have primarily occurred on the US market and that they have therefore been suffered mainly by Faiveley Transport USA. Due to the limited scope of the arbitration, which determined only the amount of damages owed to Faiveley Transport Malmö, Faiveley Transport intends to seek for compensation for damages suffered by other entities of the group from the relevant competent jurisdictions.

 “Wabtec unfairly and illegally attempted to use trade secrets from Faiveley Transport and were caught again. This award has strengthened the case for moving forward, enforcing our rights and our competitive position in the North America market” said Mr Robert Joyeux, Faiveley Transport’s Chief Executive Officer.