Jury Court issued a verdict in favor of the Computer Sciences Corporation (CSC) in the trial against Tata Consultance Services (TCS) on charges of theft of the source code and confidential documentation. The amount of compensation will be $210 million.
The jury unanimously ruled that TCS “deliberately and maliciously” took possession of the source code and confidential documentation from CSC. The companies have been awarded $140 million as compensation for damages and an additional $70 million in connection with the unreasonable enrichment of TCS.
The initial lawsuit was filed by CSC in April 2019 in relation to the use of TCS software platforms Vantage-One and Cyberlife, which are owned by CSC. These platforms had been licensed to the insurance holding company Transamerica, for whom TCS began providing technical support services.
In 2014, CSC, Transamerica, and TCS signed an additional agreement allowing TCS to make amendments to the CSC platforms, but only in the interests of Transamerica.
However, in 2016, when Transamerica decided to update its information systems, they chose TCS’s tender offer with their own BANCS platform, rejecting CSC’s application. Following this, TCS hired over 2,000 former Transamerica employees. CSC claimed that these employees had access to CSC’s source code and documentation, which they then provided to TCS’s BANCS developers.
In 2019, the situation worsened when a CSC employee mistakenly received an internal letter between TCS and Transamerica, confirming that TCS had gained access to CSC’s confidential information. As a result, CSC decided to file a lawsuit.
Despite TCS’s attempts to have the case dismissed, the charges brought by CSC were confirmed, and the case proceeded to a jury trial, which ruled in favor of CSC.
While CSC has emerged as the winner in court, the resolution of this case may not be final. Litigation may continue if TCS decides to appeal, similar to the Epic Systems case against TCS in 2017.
It is worth emphasizing the importance of respecting intellectual property rights and the serious legal consequences of unauthorized use. Companies should uphold each other’s rights to their own innovative products instead of appropriating others’ developments. This is essential for ensuring fair competition and progress in the technological field.