Relief for TCS as US court rejects CSC's demand for restraining order

  • CSC was the IT partner to Transamerica before TCS won the contract
  • TCS has denied any wrongdoing, saying that that CSC was trying to disrupt its $2 billion contract

DELHI : A US court has rejected a demand from Computer Sciences Corp. asking for a temporary restraining order against Tata Consultancy Services Ltd from working on the US-software firm’s software code as part of contract awarded from from Transamerica Life Insurance Co., a unit of Dutch insurer Aegon NV.

This comes as relief for India’s largest IT services firm which faces a case of misappropriation of trade secrets filed by erstwhile CSC, which merged with the enterprise business of Hewlett Packard to form DXC Technology Co in 2017.

TCS has denied any wrongdoing, saying that that CSC was trying to disrupt its $2 billion, 10-year contract awarded to the Mumbai-based company last year.

CSC was the IT partner to Transamerica before TCS won the contract.

“CSC fails to set forth sufficient evidence that TCS breached its duty pursuant to its obligations under the license agreement between CSC and MSI (Money Services, Inc, a subsidiary of Transamerica)/Transamerica," said a 9 May order by a court in the Northern District of Texas, Dallas Division.

Mint reviewed a copy of the order.

The court rejected CSC’s earlier charge that TCS copied the source code of Vantage One, CSC’s proprietary software, to build its own BaNCS software.

“CSC makes conclusory allegations that TCS has committed unfair competition and tortuous interference but offers no evidence in support. Accordingly, CSC has failed to make the requisite showing that he is entitled to a temporary restraining order based on these claims," said the order.

“TCS is pleased that the Court ruled in its favour and denied CSC's motion for a temporary restraining order," said a spokesperson for TCS. “TCS goes to great lengths to safeguard any Trade Secrets with which it is entrusted, from whatever the source. As this case remains pending in the court, we do not intend to comment further on the matter except to reiterate that CSC’s allegations have no merit"

Both TCS and CSC have been asked by the court to submit a proposed discovery and briefing schedule for a preliminary injunction hearing by Monday, 13 May.

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