“Discovery will reveal the extent to which Cognizant and these executives used Infosys’s confidential or trade secret information to benefit Cognizant and undermine Helix,” the counterclaim states.
Cognizant’s Original Suit
Cognizant’s lawsuit against Infosys alleges violations of the Defend Trade Secrets Act, Texas Uniform Trade Secret Act, and the Lanham Act. Cognizant claims Infosys abused its NDAA access to develop competing software, seeking damages, restitution, and an injunction to prevent further misuse of its intellectual property.
Cognizant has dismissed Infosys’s counterclaims as baseless, stating: “Cognizant encourages competition, but competitors cannot use Cognizant’s IP to unfairly compete.”
Legal Implications and Industry Impact
The case highlights tensions between competition and intellectual property protection in the healthcare IT industry. If Infosys successfully proves antitrust violations, it could set a precedent limiting how dominant players use access agreements to restrict competitors. Conversely, a win for Cognizant could reaffirm the enforceability of NDAAs as a safeguard for proprietary systems.
