Recently, the U.S. Court of Appeals for the Fifth Circuit upheld a federal district court ruling against Tata Consultancy Services Ltd. (TCS), finding Tata guilty of trade secret misappropriation and ordering it to pay Computer Sciences Corporation (CSC) $168 million (approximately RMB 1.192 billion). The damages include compensatory damages, punitive damages, and pre-judgment interest. (Case No.: No. 24-10749)

Tata Consultancy Services Ltd. (TCS), a subsidiary of India's Tata Group established in 1968, primarily provides software and consulting services to enterprises of all sizes across sectors including finance, banking, insurance, telecommunications, transportation, retail, manufacturing, and pharmaceuticals. Computer Sciences Corporation (CSC), a long-established U.S. IT services provider, merged with HPE Enterprise Services in 2017 to form DXC Technology. This global enterprise technology services provider delivers core systems and software solutions to industries including finance and insurance, utilities, and aerospace.

The dispute dates back to 2019, when CSC accused TCS of continuing to use CSC's proprietary software and trade secrets after terminating its partnership with CSC's subsidiary Transamerica. In its lawsuit, CSC alleged that multiple Transamerica employees who joined TCS gained unauthorized access to CSC software and utilized the materials to assist TCS in developing a competing insurance platform.

Tata stated it is evaluating its next legal steps, including seeking a review or appeal, and emphasized it will continue to vigorously defend its position. Concurrently, the company will reflect related liability provisions in its financial statements in accordance with accounting standards.

Attached is an excerpt from the judgment:

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