HP subsidiary punishes Indian IT company for code theft: the fine will amount to a record $210 million

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Tata Consultancy Services was unanimously found guilty, but the battle is not over yet.

A jury has ruled in favor of Computer Sciences Corporation (CSC) in a lawsuit against Tata Consultancy Services (TCS) on charges of stealing source code and confidential documentation. The amount of compensation will be $ 210 million.

The jury unanimously ruled that TCS "intentionally and maliciously" took possession of CSC's source code and confidential documentation. The company was awarded $140 million in damages and another $70 million in connection with the unjustified enrichment of TCS.

The original lawsuit was filed by CSC in April 2019 in connection with TCS use of the VANTAGE-ONE and CyberLife software platforms owned by CSC. The latter granted licenses for these platforms to the insurance holding company Transamerica, to which TCS subsequently began providing technical support services.

In 2014, CSC, Transamerica and TCS signed an additional agreement allowing TCS to make changes to the CSC software, but only in the interests of the customer — Transamerica.

However, in 2016, when Transamerica decided to upgrade its information systems, it chose the TCS tender offer with its own BaNCS platform, rejecting the CSC application. After that, TCS hired more than 2 thousand former Transamerica employees. CSC claimed that these employees had access to the CSC source code and documentation and passed them on to the BaNCS development team at TCS.

In 2019, the situation escalated when a CSC employee mistakenly received an internal email between TCS and Transamerica confirming that TCS was accessing confidential CSC information. After that, CSC filed a lawsuit.

Despite TCS attempts to get the case dismissed, CSC's charges were confirmed, and the case went to a jury trial, which returned a verdict in favor of CSC.

Although CSC won in court, the final point in this case has not yet been set. Litigation may continue if TCS files an appeal, as was the case in the similar Epic Systems v. TCS case in 2017.

It is worth reminding that unauthorized use of other people's intellectual property is unacceptable and entails serious legal consequences.

Companies should respect each other's rights to the results of intellectual activity and develop their own innovative products, and not appropriate other people's developments. This is the only way to ensure fair competition and progress in the technological sphere.
 
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