Tata Consultancy Services, an India-based IT company, was penalised $940 million with regard to a lawsuit filed by Epic Systems, a healthcare software firm. The US Federal Court, Wisconsin ordered the Indian firm to pay $700 million as disciplinary damages as well as a $240 million to Epic. In 2014, the US-based software firm accused TCS of stealing private details regarding its medical-related software.
In addition, Epic also blamed that the Indian firm had openly whipped its trade tactics to aid its competitor Med Mantra, International Business Times said quoting a case file in the federal court. The US jury charged TCS over seven claims like biased enrichment, violating deals, misuse of business secrets and imbalanced competition.
Epic had accused that Tata employees, who had been appointed as consultants to aid Kaiser Permanente in Oregon, copied 6,477 documents for 1,687 exclusive files improperly from Epic's computer. Moreover, the TCS' management team in the US and India was aware of the issue that had commenced in 2012. According to the lawsuit, TCS has been involved in a fraudulent act of stealing documents, intimate details, business secrets and other related data in order to use the technical skills developed by Epic's heavy labour and investment.
TCS, which denied the misuse of documents, said in a statement that, "TCS plans to defend its position vigorously in appeals... TCS appreciates the trial judge's announcement... that he is almost certain he will reduce the damages award." In 2003, Kaiser Permanente had hired Epic to manage its patient details. Meanwhile, in 2005, workers from the TCS-requested entrance to Epic's subtle internal web under the fake signature of Kaiser Permanente workers.
Following Kaiser's confirmation that the workers were functioning for it, Epic made them sign a pact whereby they pledged to obey the privacy policies of the company. However, Epic complained that these workers had improperly downloaded its complete suite in order to design a similar product known as Med Mantra for TCS, as reported by THE TIMES OF INDIA.
The fine amount in the case marks the highest level so far. While, the judgement reflect the jury impeachment, a final verdict in the case is yet to be made. The verdict warns that if anyone misuses someone else's business secrets and intimate details they will be penalised, Pawan Duggal, a Supreme Court lawyer, said to The Hindu.
Meanwhile, TCS noted that it would file a petition against the judgement in higher courts. The Indian firm also said that the verdict will not affect its fourth quarter earnings results, which is scheduled to be released on Monday.
