TCS Facing Lawsuit From CSC for Committing Theft of Trade Secrets And Software Sorce Code

CSC (Computer Science Corp) filed a lawsuit against TCS for committing a theft of trade secrets and stealing their software source code to develop an insurance platform.

India based TCS is one of the 100 most valuable company in the world by market valuation that recently joined with $100 billion club in market cap.

TCS signed a $2-billion project last year January with US insurer TransAmerica to build an insurance platform.

US-based Computer Services Corp had licensed for a TransAmerica subsidiary Money Services Inc (MSI) owned Vantage and CyberLife software that used to manage the administration of insurance and annuity products.

In this case, US-based Computer Services Corp alleged that TCS inappropriately use the code of these software’s, especially the code which calculates the rate of return on products that helps to develop a platform for TransAmerica.

“CSC is seeking a permanent injunction barring TCS and their employees from using CSC source code to develop their new platform,” according to attorney Tsion Chudnovsky. “These types of cases take a long time to resolve. In their filing, CSC cites the Epic verdict against TCS to try and show a pattern of willful theft of intellectual property.”

As a part of the deal, TCS hired 2,200 TransAmerica employees and planned to use its BaNCS platform to administer the insurance policies.

Part of the deal, TCS helps to Transamerica for migrating the company from CSC’s legacy software to the Indian company’s BaNCS platform.

“TCS now employs not only thousands of people who know how to use CSC software, including Vantage and CyberLife but TCS also now employs former MSI employees with knowledge of – and access to – the CSC source code hosted on the MSI servers,” CSC said in lawsuit document.

TCS Accessed the CSC source code, Documentation – CSC

CSC alleged that TCS using this access and knowledge of the CSC source code, software development related document and other top-secret data from CSC to develop TCS’ BaNCS for the U.S.

CSC also mentioned in the lawsuit document that, a TCS employee copied and pasted part of CSC’s insurance source code into an email and sent it to colleagues.

According to Economic times, “TCS BaNCS is a comprehensive product with several successful implementations globally,” the IT giant’s spokesperson said. TCS uses the BaNCS platform to administer insurance policies in the UK.

“Over the course of three weeks, TCS employees accessed and analyzed both the proprietary CSC software documentation and the Vantage source code to try to determine the method and process by which Vantage calculates this particular rate of return,” CSC said.

TCS Response in Court

The TCS BaNCS Software Development team which is located in Kolkata, India and the Transamerica Vantage Team are kept completely separate, both organisationally and physically, to ensure compliance with TCS’ obligations under its confidentiality agreements and the law,” TCS respond in court.

“Alleging that this conduct was illegal or improper or that TCS was misappropriating its trade secrets. Nor did it communicate in any manner with TCS prior to its filing of this action,”

According to TCS spokesperson, “Our legal team is reviewing the allegations and will respond appropriately. TCS will strongly defend its position before the court. As this is a pending legal matter, TCS would not like to comment further at this time,” 

Also Read: Accenture Facing Lawsuit to Repay $32M+ for Failing to Deliver the Project On Time – Poorly Written Code For Security

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