Infosys vs Cognizant: Why IT Services Majors Are Dragging Out Fight Over Trade Secrets

Infosys has intensified its legal fight with US-listed rival Cognizant Technology Solutions Corp over allegations of trade secret theft. The dispute, which began in August 2024, has now shifted focus to identifying what Cognizant considers to be its trade secrets.  

Bengaluru-based Infosys Ltd claims that information about Cognizant's healthcare products is publicly available and overly broad, as reported by Mint, citing the IT services major's latest court filing on January 17. Cognizant has requested until March 10 to respond to Infosys' claims. 

What Is the Infosys vs Cognizant Dispute About? 

The legal conflict between Nasdaq-listed Cognizant and Infosys centres on alleged trade secret theft. Last year, Cognizant sued Infosys, accusing it of stealing secrets related to its US subsidiary TriZetto's healthcare insurance software.

Cognizant alleged that Infosys used proprietary information from TriZetto's QNXT and Facets products to develop its own competing platform, the Infosys Business Assurance Store. 

Cognizant further claimed that in December 2023, it discovered Infosys had allegedly created a repository of test cases for Facets and QNXT using confidential information obtained through Non-Disclosure and Access Agreements (NDAAs) signed with clients. 

Also Read: Infosys, Wipro Vs Cognizant: Why Indian IT Giants Are Engaged In A Tug Of War For C-Suite Executives

Infosys' Counterclaim 

Earlier this month, Infosys countered Cognizant's allegations in a court filing, accusing the Nasdaq-listed firm of engaging in anti-competitive practices by imposing restrictive agreements on its clients. Infosys alleged that Cognizant enforces restrictive contractual obligations without legitimate purpose. 

The Bengaluru-based IT major also accused Cognizant CEO Ravi Kumar of delaying the rollout of Infosys’ Helix platform during his tenure at Infosys. Kumar left Infosys in 2022 and joined Cognizant in January 2023.  Infosys claims Kumar obstructed the development of Helix, delaying its launch by 18 months while negotiating his move to Cognizant. 

Infosys is now seeking a jury trial and the invalidation of Cognizant’s NDAAs. The company is also requesting triple damages and attorneys’ fees from Cognizant. 

In its latest court filing, as reported by Mint, Infosys is demanding that Cognizant clearly identify the trade secrets it claims were misappropriated. Infosys has also requested the court to delay further responses until Cognizant provides specific details.