India's TCS to appeal $940 million US court damages

Friday's verdict in the US came days before TCS announces its fourth-quarter and financial-year results on Monday


Afp April 17, 2016
PHOTO: REUTERS

NEW DELHI: India's biggest IT outsourcing firm Tata Consultancy Services (TCS) says it will challenge $940 million in damages imposed by a US court in an intellectual property theft case.

A federal grand jury in the US state of Wisconsin found TCS and its American unit guilty of using data from a US medical software firm without permission, according to Indian media reports.

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The Mumbai-based company said in a statement late Saturday that it plans to "defend its position vigorously in appeals to higher courts".

It also said it "did not misuse or derive any benefit" from documents downloaded from the user-web portal of US-based Epic Systems when developing its own hospital management system.

"As an organisation, TCS remains committed to protecting IP (intellectual property) as well as its reputation and financial interests fully," it said.

The statement did not put a figure on the fine. But the Press Trust of India and other media said TCS and the American unit were ordered to pay $240 million to Epic Systems for using its software without permission and another $700 million in punitive damages.

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Epic Systems filed the lawsuit in 2014, accusing TCS of taking its crucial data when it was hired by the company to install healthcare software for a US-based client, according to the Press Trust of India.

Friday's verdict in the US came days before TCS announces its fourth-quarter and financial-year results on Monday.

COMMENTS (1)

Azi | 5 years ago | Reply Before this there was another case against Infosys for visa frauds that carried around 400 million lawsuit. Makes me think why is it that these big indian companies take such steps, desperate to compete even if it means to cheat? If these cases are uncovered who knows how many they are still hiding?
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