TCS, Wipro face fresh patent suits in US as legal woes mount for Indian IT firms

Core Insights - Two major Indian IT services companies, Tata Consultancy Services (TCS) and Wipro, are facing patent infringement lawsuits, indicating challenges in their service expansion efforts [1][6] - The Indian IT sector, valued at $283 billion, is already experiencing low demand for IT services, and the rise in patent disputes adds to the difficulties [1][6] Group 1: Patent Infringement Cases - Calibrate Networks LLC filed a lawsuit against TCS for allegedly using and selling technology that infringes on its patent related to software application naming [2][3] - The lawsuit claims TCS knowingly continued to use the patented technology even after being served with the complaint [4][6] - Wipro is facing a similar lawsuit from Mobility Workx LLC, which accuses it of infringing on three patents related to wireless testing and 5G services [8][9] Group 2: Legal and Financial Implications - Both TCS and Wipro are experiencing revenue declines, with TCS facing its first-ever revenue drop and Wipro undergoing a turnaround after two years of decline [23] - The ongoing legal battles may affect client confidence in scaling AI and cloud programs, as legal issues surrounding intellectual property can raise concerns during deal cycles [24] - TCS has recently been fined $194 million for trade secret theft, adding to the financial pressures faced by the company [6][21] Group 3: Industry Trends - The shift from traditional IT services to software and platform-based models has increased the risk of intellectual property violations for Indian IT firms [19][20] - Experts suggest that the frequency of patent disputes indicates that global patent holders are closely monitoring the Indian IT sector as it operates in higher value, higher IP zones [20]