Infosys has firmly rejected Cognizant's trade secret theft allegations, calling them too vague. The case, unfolding in a Dallas court, revolves around claims that Infosys misused confidential information from Cognizant's healthcare software, TriZetto.
Cognizant has accused Infosys of stealing proprietary data from its QNXT and Facets software, which support healthcare administration. Infosys, however, has dismissed the accusations, arguing that Cognizant has failed to pinpoint any specific trade secrets that were supposedly misappropriated. Infosys has urged the court to demand a clearer identification of these alleged secrets, stating that the claims are too broad and lack substance.
The dispute underscores the fierce rivalry between the two IT giants. Both firms are competing for dominance in the IT services market, with Infosys and Cognizant battling for the second position behind Tata Consultancy Services. The legal case adds another layer of intensity to their competition.
Infosys has criticized Cognizant's court filings, describing them as promotional content rather than concrete legal arguments. In its latest response, Infosys noted that Cognizant initially classified key documents as "highly confidential," only to later make them public. This reversal, Infosys argues, undermines the credibility of Cognizant's claims.
Adding to the complexity, Infosys has countered with its own allegations. The Bengaluru-based firm has claimed that Cognizant's lawsuit is an attempt to access Infosys' proprietary information through legal means. Infosys asserts that Cognizant is using litigation to gather competitive insights that would otherwise be off-limits.
Cognizant's case hinges on claims that Infosys leveraged TriZetto's confidential data to develop competing products. However, Infosys maintains that the information in question is publicly accessible and does not qualify as a trade secret. The company has also pointed out that Cognizant has not identified a single test case proving misappropriation.
The issue timing is very critical. Accidental coincidence has occurred with both companies continuously fighting over market shares with continued neck-and-neck revenue figures, with Infosys for the last quarter reporting revenues of $4.94 billion and Cognizant $5.08 billion. The competitive edge is all these two share in helping the firms continue building their revenues.
Beyond the courtroom, this legal skirmish increasingly underlines the growing significance of intellectual property in the IT services sector, especially as the companies heavily invest in software development, translating into a priority in keeping proprietary technology safe.
For now, the case continues, with Infosys standing firm in its demand for clearer allegations. With both sides deeply entrenched, the outcome of this legal battle could have significant implications for the industry.
Infosys and Cognizant are fighting a legal battle in a US court. Cognizant claims that Infosys stole trade secrets related to its healthcare software, TriZetto. Infosys denies this and says Cognizant has not clearly stated what secrets were stolen. Infosys also argues that the information Cognizant is talking about is already public. The case highlights the tough competition between the two IT giants as they compete for the second spot in India's IT industry, just behind Tata Consultancy Services.