LitigationPatent

Trade Secrets Lessons from Epic Systems v. Tata Consultancy Services

On August 20, the Seventh Circuit in Epic Systems Corp. v. Tata Consultancy Services Ltd & Tata America Interntional Corp d/b/a/ TCS America No. 1950 (7th Cir. Aug. 20, 2020) upheld an award of damages against Tata for theft of trade secrets relating to Epic’s health care software. After a jury trial in 2016, a jury found that Tata must pay $240 million in a compensatory damages to Epic, and $700 million in punitive damages. The district court later struck $100 million in compensatory damages and reduced the punitive damage award from $700 million to $280 million under a Wisconsin statute that caps punitive damage awards at two times compensatory damages. In the August 20 decision, the Seventh Circuit agreed with the district court that the jury could award punitive damages but found that the $280 million punitive damages amount was excessive and remanded the case with instructions to reduce that award.

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