US IT firm CSC sues TCS for misappropriation of source code
New Delhi: US IT services company Computer Sciences Corp (CSC) has filed a lawsuit against Indian IT bellwether Tata Consultancy Services (TCS) for alleged misappropriation of CSC’s source code to build an insurance platform, following a 2 billion dollar deal from US insurer TransAmerica that TCS won last year.
It is the second such case against TCS. In 2014, the Indian IT major was sued by US software firm Epic Systems for trade theft involving over 6,000 documents of its system development information. Initially, a court imposed a penalty of 940 million dollar against TCS, which later on another court halved it to 420 million dollar. Currently, TCS is appealing against this in a federal court, according to a report in the Economic Times.
In a lawsuit filed last week in Texas, seeking punitive damages, CSC said that TCS is improperly accessing its codes. “Our legal team is reviewing the allegations and will respond appropriately. TCS will strongly defend its position before the court. As this is a pending legal matter, TCS would not like to comment further at this time,” a TCS spokesperson said in response to a detailed questionnaire sent by ET.
After the merger with HP Enterprise services, CSC is now DXC Technology. It had licensed Vantage and CyberLife, its insurance products to Money Services Inc (MSI) which is now owned by TransAmerica. The suit says that MSI was using the CSC software to administer and process TransAmerica’s insurance and annuity policies.
“TCS now employs not only thousands of people who know how to use CSC software, including Vantage and CyberLife but TCS also now employs former MSI employees with knowledge of —and access to —the CSC source code hosted on the MSI servers,” ET report quoted CSC as saying.
“TCS is using this access to and knowledge of the CSC source code, software documentation, and other proprietary and confidential CSC information to develop TCS’ BaNCS for the US,” it further added.
CSC alleges, “Later, a TCS employee copied and pasted the actual Vantage source code pertaining to this calculation, and resulting Vantage calculations, into an email and sent it to his TCS colleagues.”
DXC told the national publication that, “As it is our policy generally not to comment on pending litigation, we do not expect to have further comment as the litigation proceeds.”