Indian IT companies are now going through a major change. They are not limited to just providing outsourcing services, but are now also creating their own software products, platforms and AI-based solutions. This change is a sign of moving towards new heights, but at the same time the risks related to Intellectual Property (IP) are also coming to the fore, especially in markets with strict legal systems like America.
Hexaware case: a warning sign
Recently, two American companies, NatSoft and Updraft, have sued India’s Hexaware Technologies for $ 500 million (about Rs 4,000 crore). They allege that Hexaware has misused their software and technology. This is not just an isolated case, but it shows that as Indian companies are moving towards innovation, legal threats are also increasing.
America: largest market
America is the biggest customer for Indian IT companies but it is also where they face the highest legal risk. America’s legal system is strict and if a company is accused of misusing a patent or software, it may have to pay millions of dollars in damages. This is why litigation there can prove to be extremely sensitive and dangerous.
Why are these cases increasing?
Experts believe that Indian IT companies are now trying to assert their rights over software licensing, code ownership, and AI technology. But sometimes the use of old clients, partnerships or open-source code is not clear, due to which disputes arise. In America, companies immediately file lawsuits, which impacts projects and puts the company’s reputation at risk.
What should Indian companies do?
Experts believe that to avoid such disputes, companies can make Due Diligence a part of the process. Additionally, companies can create clear contracts with employees and contractors and fully document AI and software products.
the way forward
It is clear that progress in technology does not happen only through innovation, but can be done only with legal responsibilities and security measures. The Hexaware case is just an example, but it is a big lesson for other companies. As Indian IT firms start building products for the world, they have to understand that every line of code can also become a legal risk.