Tata Consultancy to Appeal Verdict in Infringement Case

  • Software company says it didn't misuse documents from Epic
  • Tata, American unit ordered to pay $940 million in damages

Tata Consultancy Services Ltd. said it will appeal an almost $1 billion verdict against the Indian software company in a U.S. intellectual-property infringement case.

A federal jury in Madison, Wisconsin, found that Tata Consultancy and Tata America International Corp. should pay $940 million for using data from Epic Systems without permission, according to a verdict handed down on April 15. The company can file an appeal within 30 days of the trial judgment, which is expected in the next six to eight weeks, Tata Consultancy said in an e-mailed statement.

The company will defend itself “vigorously in appeals to higher courts,” it said, adding that it didn’t misuse or derive any benefit from documents downloaded from Epic System’s user Web portal.

Tata Consultancy quoted the trial judge as saying that he was “almost certain” to reduce the amount. The jury verdict won’t have any impact on the company’s fourth quarter and financial year results due on Monday, it said.

The jury awarded $240 million in compensatory damages for Tata Consultancy’s use of comparative analysis and other confidential information, according to the verdict form. The rest of the award was punitive damages. U.S. District Judge William M. Conley said in an order posted to the docket Saturday that Tata Consultancy may challenge either of the damages amounts “at any time.”

Harsha Ramachandra, a spokeswoman for Tata Consultancy, declined to comment further as the matter is before courts.

Tata Consultancy rose 0.3 percent to 2,526.20 rupees on April 13, the highest level since Nov. 4. Indian markets were closed April 14 and 15 for public holidays.

The case is Epic Systems Corp v. Tata Consultancy Services Ltd., 3:14-cv-00748, U.S. District Court, Western District of Wisconsin (Madison).

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