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TCS to challenge $940 mn US fine in IP case

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18 April 2016

India's biggest information technology outsourcing firm Tata Consultancy Services (TCS) has said it will challenge the order imposing $940 million (Rs6,264 crore) in damages imposed by a US court in an intellectual property theft case.

A federal grand jury in the US state of Wisconsin reportedly found TCS and its American unit guilty of using data from a US medical software firm without permission.

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 organization, 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 (Rs1,599 crore) to Epic Systems for using its software without permission and another $700 million in punitive damages.

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 today.





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