Home / Business and Economy / TCS Fined $194M Over Trade Secrets
TCS Fined $194M Over Trade Secrets
23 Nov
Summary
- US Court of Appeals upholds $194 million trade secret fine for TCS.
- TCS accused of using DXC Technology's secrets for a major contract.
- Damages include compensatory and exemplary amounts, upheld on appeal.
The US Court of Appeals has affirmed a significant financial penalty for Tata Consultancy Services (TCS), maintaining a $194 million fine. This ruling stems from allegations of trade secret misappropriation brought by DXC Technology. The core of the dispute involved TCS allegedly leveraging DXC's trade secrets to secure a lucrative $2.6 billion contract with Transamerica and to develop its proprietary BaNCS software platform.
The appellate court's decision largely sides with an earlier ruling, upholding the substantial damages awarded to DXC Technology. These damages comprise compensatory and exemplary amounts, along with prejudgment interest. While the court did vacate the previously imposed injunction, which had barred TCS from using the BaNCS material, the financial penalties remain firmly in place, underscoring the seriousness of the trade secret violation.
Despite the unfavorable outcome, TCS stated it is evaluating further legal options, including potential appeals to higher courts. The company maintains it will vigorously defend its position. This ongoing legal battle highlights the critical importance of intellectual property protection within the competitive IT services industry, with significant financial implications for the involved parties.
