Infosys allegedly stole our trade secrets, Cognizant claims, files suit in US court

Cognizant sought damages and an injunction to stop Infosys from misusing its trade secrets

New Delhi:

Cognizant TriZetto Software Group Inc has filed a complaint against Infosys Limited in a US court for alleged misappropriation of trade secrets, breach of contract and unfair competition.

In its allegation filed in a Texas court, Cognizant said the Bengaluru-based IT firm illegally extracted data from Cognizant’s databases and used it to create and market competing software.

Infosys denied the allegations in a statement and said it would defend itself in court.

Cognizant asked the court for an unspecified amount in damages and an order requiring Infosys to stop misusing its trade secrets.

“Infosys, a multinational technology company, gained access to certain closely guarded proprietary software offerings of TriZetto, as well as associated technical documentation, under the guise of non-disclosure and access agreements (NDAAs) it entered into with TriZetto for the limited purpose of equipping Infosys to complete work for certain Infosys clients, who were also TriZetto clients,” Cognizant said in documents filed with the Texas court.

“The NDAAs narrowly and strictly define the contours of Infosys’ permitted access to TriZetto’s proprietary information and trade secrets, granting access to a very limited number of Infosys employees for narrowly specified purposes. Yet, in violation of these agreements, Infosys has misappropriated TriZetto’s trade secrets and stolen its confidential information to develop or enhance its own competing software and service offerings for its own financial gain, thereby causing serious and irreparable harm to TriZetto,” Cognizant said.

Cognizant had revenue of over $19.3 billion last year, while Infosys had revenue of over $18.5 billion, according to company reports.

Cognizant won $854 million from Atos subsidiary Syntel in a separate dispute over Facets trade secrets in 2020. The award was later reduced and then overturned on appeal last year, though the court found Syntel was still liable for a yet-to-be-determined amount in damages.

With contributions from Reuters