TCS, Wipro face fresh patent suits in US as legal woes mount for Indian IT firms

Albuquerque-based Calibrate Networks LLC filed a lawsuit against TCS for allegedly using and selling its patented technology, while Florida-based Mobility Workx LLC filed a separate complaint accusing Wipro of infringing upon its telecom-related patents, according to court filings.

The two cases mark growing patent scrutiny of India’s $283 billion IT sector even as it grapples with low demand from clients. Homegrown IT services companies have been building software platforms and products to expand their services to clients. These require certain technologies which are similar to those patented by peers, triggering disputes.

Patents are licences granted to inventors, which prohibit others from creating, using, or selling such inventions for a specified time.

“As firms shift from traditional services to more software-intensive delivery, the risk surface naturally expands," said Phil Fersht, chief executive of HFS Research. “Indian IT firms are moving deeper into platform, cloud, and AI-driven work, which increases the chances of touching patented technologies in sensitive areas like networks, mobility, and automation."

Queries emailed to TCS and Wipro remained unanswered.

Calibrate filed its lawsuit against TCS in the Marshall division of a Texas district court on 28 October, for allegedly using and selling its patented technology that privately changes the names of software applications.

The company said it has the patent over the technology that secretly rebrands a piece of software, without altering the underlying code. The '633 patent' in question allows a network to be faster and more stable by efficiently handling data, managing address changes, and having immediate backup plans for failed connections.

On the other hand, TCS’s cloud management software Kubernetes uses a specific technology to automatically change the location of software in an IT network.

Trying times

Calibrate’s lawsuit alleges that TCS is not just using this technology, but is also selling it to clients. The lawsuit also stated that TCS had direct knowledge of this infringement and continued to use this technology.

“Despite such actual knowledge, Defendant (TCS) continues to make, use, test, sell, offer for sale, market, and/or import into the United States, products that infringe the ’633 Patent. On information and belief, Defendant has also continued to sell the Exemplary Defendant Products and distribute product literature and website materials inducing end users and others to use its products in the customary and intended manner that infringes the ’633 Patent," according to Calibrate’s patent infringement complaint on 28 October.

The complaint further stated that TCS continued to use the technology in question even after being served a complaint.

“At least since being served by this Complaint and corresponding claim charts, Defendant has actively, knowingly, and intentionally continued to induce infringement of the ’633 Patent, literally or by the doctrine of equivalents, by selling Exemplary Defendant Products to their customers for use in end-user products in a manner that infringes one or more claims of the ’633 Patent," read the Calibrate complaint.

Wipro issue

Less than a month later, Mobility Workx filed its complaint against Wipro in the Sherman Division of a Texas district court on 18 November. The company has accused Wipro of infringing upon three of its patents related to wireless testing, cellular network access, and 5G product testing services for clients.

It cited patent infringement on three counts. First, it accused Wipro of selling wireless testing services and even enabling access to cellular networks, each of which falls under its patent.

Mobility said Wipro also induced its customers to violate a second ‘508 patent,’ which allows smartphones to maintain a connection to the telecom networks during transit.

Simply put, a person moving from Bengaluru to Mumbai does not lose internet connectivity or phone network during travel because of this technology, which allows telecom companies to connect to cell towers in various locations before the person even arrives in that location.

Mobility also accused Wipro of copying a third ‘417 patent’, which focuses on the technology used in shifting cell towers during travel.

Mobility alleged that Wipro knew of the patent infringement before the complaint was even filed.

“Prior to, or at least through, the filing and service of this amended complaint, Defendant (Wipro) knew of the ‘508 Patent and the infringing nature of the Accused Handover Products/Services of others that were directly or indirectly customers of Defendant," read the complaint.

According to Mobility, the Bengaluru-based IT services company continued to violate the patent.

“Defendant however continues or continued to actively encourage customers of its Accused Emulation Products/Services to directly infringe the ‘508 Patent by making, using, selling, offering to sell, or importing the Accused Handover Products/Services. Defendant does or did so with knowledge and intent that the customers of Defendant’s Accused Emulation Products/Services commit these acts of direct infringement of the ‘508 Patent," read the complaint.

It added that it was also prompting its clients to violate the license.

“Defendant also continues or continued to make, use, offer for sale, sell, and/or import its Accused Emulation Products/Services despite knowing of the ‘508 Patent, thereby specifically intending for and inducing users of its products and services to infringe the ‘508 Patent through their ordinary use of the Accused Emulation Products/Services," according to the complaint.

Facing flak

Both Calibrate and Mobility, which sell patents to companies, have sought jury trials and damages from the Texas courts, but have not specified any amount. Calibrate is represented by Rabicoff Law LLC, whereas Mobility is represented by Machat & Associates PC, and Zeisler PLLC.

For TCS, the latest case follows another unfavourable order from a Dallas court last week. A US Court of Appeals upheld a Texas district court order to fine TCS $194 million for stealing DXC Technology's trade secrets while servicing Transamerica, to build its own banking software.

On 23 September, New Jersey-based IT services firm, Natsoft Corp, sued Hexaware Technologies for breach of contract and patent infringement, seeking $500 million, or a third of Hexaware’s revenue, in damages. This is one of the biggest patent cases against an Indian IT firm.

Natsoft, in its complaint filed in an Illinois district court, stated that Hexaware used application modernization software whose work was covered by nine patents developed by Updraft, an IT services company that Natsoft acquired in 2024.

Hexaware denied Natsoft’s claims.

“Our platforms are the result of original engineering, and we’ll stay focused on delivering value. We’re confident in a positive outcome as the facts are reviewed," said Srikrishna Ramakarthikeyan, chief executive of Hexaware, in a press release on 27 October.

The company denied all allegations in the lawsuit and “believes these claims are without merit and that it will be vindicated in this litigation on all counts."

Software deep-dive

Such patent infringement cases are a result of moving into deeper software offerings, according to an expert.

Fersht of HFS Research said that three cases in quick succession signal that global patent holders are watching this space closely and are willing to test their claims in court. “It is less a referendum on Indian IT and more a sign that the industry is operating in higher value, higher IP zones where disputes are more common."

In fact, HCL Technologies Ltd, India’s third-largest Indian IT firm, had in April 2023 accused French IT firm Atos SE of not compensating it for using two of International Business Machines Corp’s proprietary software products, which HCL had purchased in 2018. HCLTech sought $132 million in damages from Atos for copyright infringement.

The same year, a Wisconsin court ordered TCS to pay $140 million to Epic Systems for stealing trade secrets of its proprietary health record software to build a competing product, drawing an end to a decade-long court battle.

More stress

A similar dispute erupted between Infosys Ltd and Cognizant Technology Solutions Corp in 2023. Cognizant accused Infosys of using trade secrets pertaining to TriZetto, a software that processes healthcare claims, to build a competing product. Infosys counter-charged Cognizant with being anti-competitive and stifling competition. Both companies are still contesting this lawsuit.

For TCS and Wipro, the recent cases ended with a revenue decline in the first six months of the fiscal. While TCS is staring at its first-ever yearly revenue decline, Wipro is in the midst of a turnaround after its topline contracted for two straight fiscals. TCS and Wipro ended FY25 with $30.18 billion and $10.51 billion, respectively, in revenue.

Such cases can impede their ability to win deals, even if the financial damages are addressed, according to Fersht. “Clients want confidence when they scale AI, cloud, and network modernization programmes, and any legal cloud around IP can raise questions during deal cycles."