Given that it is not the first such suit against the IT firm, rather its third after the Epic Systems case, and the Simonelli Innovation Inc case that was later dismissed by a Texas court, analysts say the incident does raise questions about lackadaisical view Indian firms have on intellectual property (IP), lack of guidelines and enforcement for the same.

Image result for TCS was recently in the news for a trade secret theft case file

Mahindra Satyam had also earlier settled an IP infringement lawsuit filed by UPaid, which offers solutions for payments via mobile phone, for $70 million. The suit was filed by UPaid in 2007. "Indian firms do not take intellectual property concerns seriously. These incidents will force companies to put in stringent guidelines in place and enforce them," said Pareekh Jain of technology consulting firm Pareekh Consulting.



Jain cautioned that larger implication of such cases will be that companies will be more cautious while outsourcing services and put stringent guidelines for IT services firms to follow. At the same time, the incidents may not seriously dent TCS' reputation. Also, service providers should not buckle under the pressure of growth. Many employees may end up taking unintended and non-malicious short cuts and find themselves violating the IP ownership.


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