Why TCS and Wipro are facing fresh US patent lawsuits
What's the story
India's leading IT firms, Tata Consultancy Services (TCS) and Wipro, have been hit with fresh patent lawsuits in the United States. The cases were filed by Albuquerque-based Calibrate Networks and Florida-based Mobility Workx within the last 45 days. Both cases involve high-value technologies related to cloud management and telecom networks.
Case details
TCS accused of patent infringement by Calibrate Networks
Calibrate Networks filed a patent infringement lawsuit against TCS in the Marshall division of a Texas district court on October 28. The company accused TCS of using and selling technology that privately changes the names of software applications, without permission. Calibrate claims this technology is covered by its patent and has been illegally used by TCS in its products.
Legal implications
TCS's alleged knowledge and continued use of patented technology
Calibrate's lawsuit claims that TCS had direct knowledge of the patent infringement but still continued to use the technology. The complaint states, "Despite such actual knowledge, Defendant (TCS) continues to make, use, test, sell...products that infringe the '633 Patent." It further alleges that TCS has actively encouraged its customers to infringe this patent through their ordinary use of its products/services.
Accusations against Wipro
Wipro faces similar lawsuit from Mobility Workx
A month after Calibrate's lawsuit, Mobility Workx filed a similar complaint against Wipro in the Sherman Division of a Texas district court on November 18. The company accused Wipro of infringing three patents related to wireless testing, cellular network access, and 5G product testing services for clients. It also claimed that Wipro had induced its customers to violate these patents knowingly.
Business repercussions
Impact of lawsuits on TCS and Wipro's business
These legal battles come as both TCS and Wipro are already facing revenue declines. Experts say such cases could impact their ability to win deals, even if financial damages are addressed. "Clients want confidence when they scale AI cloud, and network modernization programs, and any legal cloud around IP can raise questions during deal cycles," said Phil Fersht, CEO of HFS Research.