Infosys refuted Cognizant’s claims of theft of trade secrets, arguing that the alleged secrets are publicly known. The U.S. court has requested Cognizant to identify its trade secrets precisely. The dispute has raised concerns about anti-competitive behavior between the two companies in the healthcare IT sector.
Infosys Ltd has denied allegations made by Cognizant Technology Solutions Corp. concerning the theft of trade secrets. The Indian IT company contended that a simple online search provides ample public information regarding Cognizant’s healthcare solutions, leading a U.S. court to request Cognizant to specify its claims regarding trade secrets. Infosys stated that Cognizant’s broad definitions of its trade secrets encompass elements of well-known, two-decade-old software products QNXT and Facets, and insisted that these claims are factually and legally incorrect.
In a motion filed in January, Infosys criticized Cognizant for using vague and excessive definitions in their allegations. The firm referenced public accessibility to knowledge about QNXT and Facets, which are widely known within the healthcare, insurance, and IT service sectors. Infosys moved to compel Cognizant to distinctly outline the trade secrets it claims were misappropriated.
The dispute, which began in August 2024, has escalated into a prolonged legal confrontation between the two software services companies. Cognizant asserted that Infosys stole confidential information related to their products for processing insurance claims. Conversely, Infosys attributed the delay in its healthcare products’ rollout to Cognizant’s CEO, Ravi Kumar S., who was negotiating his transition from Infosys to Cognizant at that time.
Cognizant requested an extension until March 10, 2025, to respond to Infosys’s counterclaims, with both companies represented by distinct legal firms. Infosys’s motion elaborated on their position, citing the lack of clarity in Cognizant’s identification of its purported trade secrets and requesting the court to delay proceeding until these were firmly established.
Cognizant had raised concerns regarding Infosys’s offerings that it alleged contained confidential information from TriZetto, a company Cognizant acquired in 2014. Infosys denied these claims, arguing that Cognizant has not specified the exact nature or scope of the alleged trade secrets, complicating the legal discourse. Furthermore, Infosys’s motions indicate their approach to protect against what they deem anti-competitive practices by Cognizant.
An industry expert commented that the legal impasse may adversely affect India’s IT sector, noting that Cognizant must substantiate its allegations in court. Furthermore, Infosys has initiated actions seeking remedies against what it perceives as unfair competitive conduct by Cognizant. The ongoing litigation underscores the strained relationship between two major players in the healthcare IT service market.
In summary, Infosys has categorically denied Cognizant’s accusations of stealing trade secrets, asserting that the claimed information is publicly accessible. The escalating legal dispute highlights tensions within the IT industry, especially regarding fair competition and the delineation of proprietary information. As both firms navigate this controversy, the resolution may significantly impact their business operations and reputations within the sector.
Original Source: www.livemint.com
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