India’s biggest IT outsourcing firm Tata Consultancy Services (TCS) said it would challenge US$940 million in damages imposed by a US court in an intellectual property (IP) theft case.
A federal grand jury in the US state of Wisconsin found TCS and its US unit guilty of using data from a US medical software firm without permission, according to Indian media reports.
The Mumbai-based company said in a statement released late on Saturday that it plans to “defend its position vigorously in appeals to higher courts.”
“While TCS respects the legal process, the jury’s verdict on liability and damages was unexpected as the company believes they are unsupported by the evidence presented during the trial.” it said.
It also said that 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, Med Mantra, which was implemented for a large hospital chain in India in 2009.
“As an organization, TCS remains committed to protecting IP as well as its reputation and financial interests fully,” it said.
The statement did not put a figure on the fine. However, the Press Trust of India and other media said TCS and the US unit were ordered to pay US$240 million to Epic Systems for using its software without permission and another US$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, which are expected today.
“The Jury verdict will not have any impact on the TCS Q4 and FY16 financial results,” the statement said.
Additional reporting by staff writer
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