TCS

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WIPRO

Face Legal Heat as IP Disputes Rise

India’s IT services sector, already grappling with weak demand, is facing mounting intellectual property (IP) challenges. Fresh lawsuits against Tata Consultancy Services (

) and highlight the risks of expanding into software-intensive offerings, where patent disputes are increasingly common. These cases add to a string of high-profile litigations that threaten reputation, deal wins, and investor confidence. On 28 October, Calibrate Networks filed a lawsuit in Texas alleging TCS infringed its ’633 patent related to software renaming technology. The complaint accuses TCS of knowingly using and selling products that violated the patent, even after being served notice. This follows a $194 million fine against TCS for trade secret theft involving DXC Technology. Less than a month later, Mobility Workx sued Wipro in Texas, alleging infringement of three patents tied to wireless testing, cellular network access, and 5G handover technology. The complaint claims Wipro induced customers to infringe patents knowingly, continuing to sell services despite awareness of violations. In September, Natsoft sued Hexaware for breach of contract and patent infringement, alleging misuse of nine patents linked to application modernization software. Hexaware has denied the claims, calling them baseless, but the case underscores rising risks for mid-sized IT firms. Experts note that Indian IT firms are moving deeper into platforms, cloud, and AI-driven services, expanding their “risk surface.” Patent holders globally are monitoring closely, leading to more disputes in high-value, IP-heavy areas like networks and automation. Legal disputes can impede deal wins, even if damages are settled. Clients scaling AI, cloud, and modernization programs demand IP clarity. With TCS reporting its first-ever revenue decline and Wipro in turnaround mode, these cases add pressure to already strained financials.