US software company CSC sues TCS for illegal use of IP

Bengaluru: US IT services company CSC – which is now DXC following the merger with HP Enterprise Services – has filed a case against Tata Consultancy Services (TCS) for alleged misappropriation of CSC’s source code and one of its proprietary products to develop a competing software product.
This is the second such case that TCS is fighting. In 2014, US software firm Epic Systems sued TCS for trade theft (more than 6,000 documents of its system development information), and a court initially imposed a penalty of $940 million, which another court later halved to $420 million. TCS has appealed against this in a federal court. CSC, which has a stronghold in the US life insurance space, owns proprietary software to process life insurance and annuities policies. CSC has alleged that TCS accessed and used CSC’s source code and documentation to improve its BaNCS software and tap into clients in the US insurance market.