US judge says no to CSC’s request for curbs on TCS

Computer Sciences Corporation’s request for a temporary restraining order on Indian IT giant Tata Consultancy Services has been denied by a US court.

The US-based technology company failed to demonstrate that there was a ‘substantial likelihood’ it would succeed on the merits of its claims, said US States District Judge Sam Lindsay in an order dated May 9. ET has a copy of the order.

Last month, CSC filed a lawsuit against India’s largest IT services company accusing TCS of using its software code to build an insurance platform for TransAmerica. TCS had won a $2 billion deal to help the US insurer migrate from legacy platforms, including CSC’s parent DXC Technology’s products, to the Indian company’s BaNCS platform.

In addition to seeking a jury trial, CSC had also asked the court to issue a temporary restraining order against TCS to prevent it from allegedly misusing the US firm’s trade secrets.

“The court determines that, at this stage, CSC has failed to demonstrate that there is a substantial likelihood that it will succeed on the merits of each of its claims,” the judge said. The US company also failed to provide sufficient evidence that TCS ‘breached’ its duty related to its obligations under the license agreement between CSC and TransAmerica, the judge ruled.

“While CSC may ultimately prevail on one of its claims, the record simply does not contain sufficient evidence to entitle CSC to a temporary restraining order at this stage,” the judge later added. He directed the parties to submit a proposed discovery and briefing schedule.

In a filing opposing the CSC’s bid for a temporary restraining order, a TCS executive had said that such an order could halt the Mumbai-headquartered company’s business with its insurer client and that CSC would likely look to benefit from it, ET reported earlier.

“TCS is pleased that the Court ruled in its favour and denied CSC's motion for a temporary restraining order. TCS goes to great lengths to safeguard any Trade Secrets with which it is entrusted, from whatever the source,” a TCS spokesperson told ET in an email.

“As just a part of those efforts, we have a strict code of conduct in place and stringent policies designed to meet all of our legal and ethical obligations. We recognize the confidence these measures provide to those who choose to work with us,” the spokesperson said.

Since the case is pending in court, the company would not comment further, the spokesperson said. CSC said its policy precluded it from commenting on ongoing court cases.

CSC’s case against TCS is a second one alleging the Indian IT company has stolen trade secrets. TCS lost the first case to Epic Systems and was required to pay over $400 million after a jury ruled against it. The company is currently appealing that verdict in a higher court.