India: Case Brief: Simonelli Innovation Llc V. Tata Consultancy Services Ltd. (TCS)

Last Updated: 3 September 2018
Article by Apoorva Sharma



Case Number: 5:2018cv00840

Case Filed On : August 15, 2018

Court: Texas Western District Court US

Presiding Judge: Fred Biery

Nature of Suit: Contract – IP Infringement

Cause of filling Suit – Breach of Contract


US-based Simonelli Innovation LLC sued Tata Consultancy Services Ltd (TCS) in Texas Court for violation of Defend Trade Secrets Act, breach of contract, fraud and misrepresentations, gaining unfair advantage by wrongful and improper use of Simonelli's intellectual property (IP) and trade secrets to build its own consulting practice. Simonelli, a private Consulting firm in Texas accused TCS for misusing Simonelli's trade secrets and/or confidential information and obtaining illegal profits, and sought a jury trial, seeking compensation for loss in revenue on account of TCS misusing its consulting services .

Simonelli Innovation LLC and TAIC entered into an 'Alliance Agreement' on June 11 , 2014 to co-develop a "prototype factory and co-innovation model" to let TCS provide prototyping services to clients, through "Rapid Iterative Experimentation Process" (RIEP). The present case has been instituted because TCS and TAIC agreed to keep trade secrets of Simonelli Innovation LLC confidential under the Alliance Agreement and to only use the same in projects under the 'Alliance Agreement' that would mutually benefit both entities. Simonelli alleges breach of 'Alliance Agreement' and misuse of trade secrets by TCS, hence, the present suit was instituted on 15 August 2018 in Western District Court of Texas, by Simonelli. .

Plaintiff's Claims:

  • Breach of Alliance Agreement by TCS and non-payment of due profits of Plaintiff, as agreed under the agreement.
  • The Defendants continued to use the confidential information provided by Simonelli outside of the Alliance Agreement without advising or compensating Plaintiff in violation of that agreement.
  • TCS signed a contract with Simonelli Innovation, LLC, used Simonelli Innovation LLC's confidential and proprietary techniques and information to set up a business, then refused to go forward with deals that were worked on in good faith because of the terms of the contract.
  • Continued to advertise the services that Simonelli's confidential information and trade secrets were used to create the REIP and Prototype factory as recently as May 18, 2018.

Causes of Action, as alleged by the Plaintiff:

  • First cause of action– Violation of the Defend Trade Secret Act 18 U.S.C.A. § 1836

    Defendant took Simonelli's trade secret under the guise of contractual agreement, knowingly used those secrets outside the agreement to build their business and failed to compensate plaintiff as per the agreement.
  • Second cause of action– Breach of Contract

    Defendants have breached the agreement by using Simonelli's confidential information outside of Alliance Projects to build a consulting/innovation business in breach of that agreement. Simonelli has incurred substantial damages as a result of Defendants' breach of the agreement, all of which were foreseeable consequences of Defendant's breach.
  • Third cause of action – Breach of Good Faith and fair dealing

    Defendant owed the duty of good faith and fair dealing implied from the TCS America agreement which also prohibited the defendant from misusing and misappropriating Plaintiff's trade secrets.
  • Fourth cause of action – Fraud

    Defendant fraudulently represented plaintiff that they will compensate to plaintiff for the work performed by plaintiff in building their business as an innovation consultancy. False representation were made by the Defendant so that plaintiff would continue to work for without proper pay.
  • Fifth Cause of action– Misrepresentation

    Defendants represented to Plaintiff that it would be compensated for its work in building Defendants' consultancy infrastructure.
  • Sixth cause of action– Common Law Unfair Competition

    Access to Plaintiff's confidential information and trade secrets gives unfair advantage to the Defendants in their competition with the Plaintiff's .
  • Seventh cause of action – Unjust enrichment

    TCS and TAIC has obtained illegal profits and benefits from the services of the Plaintiff and causing them severe damage/ loss in return.
  • Eighth Cause of Action – Promissory Estoppel

    Plaintiff relied on the promises of the Defendants who repeatedly told them that they will be compensated for their work.
  • Ninth Cause of Action – Quantum Meruit

    Plaintiff did substantial work that created infrastructure, that helped the Defendant to build its innovation business and from which they continue to reap benefit fromwithout paying any compensation to the Plaintiff.

Relief Claimed:

  • Compensation for the loss of actual and consequential damages suffered by Plaintiff due to defendant wrongdoing.
  • Profit arising from the benefit of defendant from plaintiff confidential and proprietary agreement.
  • Punitive damages against defendant in an amount to be awarded to plaintiff by the court.

Originally published in IP & Legal Filings

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions