Infosys to vigorously contest Cognizant's trade secrets lawsuit 

Infosys, the Bengaluru-based information and technology giant, has announced its intention to "vigorously defend" itself against a trade secrets lawsuit filed by its rival, Cognizant. The legal battle unfolding in a Texas federal court centres on allegations that Infosys misappropriated trade secrets related to Cognizant's healthcare insurance software.

In a statement issued on August 23, 2024, Infosys refuted the claims made by Cognizant's subsidiary, Cognizant TriZetto. The lawsuit accuses Infosys of unlawfully utilizing TriZetto's software, specifically the Facets and QNXT platforms, to create a product known as "Test Cases for Facets." Cognizant argues that Infosys repackaged TriZetto's data and used it to develop new software, breaching confidentiality agreements and legal protections according to a report by PTI.

Response of Infosys to the claims made by Cognizant

Further, Infosys has responded firmly, stating, "Infosys is aware of the lawsuit. We deny all allegations and will defend our position in the court." The company's spokesperson emphasized their commitment to contesting the charges and maintaining their legal and ethical standards.

This lawsuit adds another layer to the intense competition between Infosys and Cognizant, both of which are approaching $20 billion in revenue. The rivalry is further complicated by personal ties; Cognizant's CEO, Ravi Kumar S, previously served at Infosys as president and deputy Chief Operating Officer until October 2022. Additionally, Cognizant recently appointed Rajesh Varrier, another former Infosys executive, as its new India Chairman and Managing Director.

The legal dispute comes on the heels of Infosys's allegations against Cognizant for allegedly poaching key executives, which Infosys documented in a letter last year. This situation mirrors similar actions taken by other Indian IT firms, including Wipro, which also filed lawsuits over executive departures. Wipro reached a settlement with Cognizant earlier this year, resolving a non-compete lawsuit involving a $505,087 payment.

As the Information and Technology industry faces an uncertain demand environment and multi-decade low revenue and profits, the legal skirmishes between these tech giants underscore the competitive tensions within the sector.