Bengaluru:A US Court document revealed that HCL Technologies' claim alleging that French IT company Acts of copyright infringement persists, documents accessed by TOI showed. The US court confirmed the judge's conclusions as correct and partially granted and partially denied Atos' motion to dismiss. HCL Technologies is seeking $132 million in damages from Atos for copyright infringement.
In 2018, HCL Technologies spent $1.8 billion to acquire select software assets from IBM, marking one of the largest acquisitions by an Indian IT services company. HCL had an IP (intellectual property) partnership with IBM in some of these products, where HCL would develop the products and IBM would sell and service them. Following the terms of an asset purchase agreement between IBM and HCL in 2018, HCL Technologies became the sole owner of DX Software and Domino Software.
IBM has granted HCLTech the right to sue for past, present and future infringement, misappropriation or any other violations of HCLTech's exclusive proprietary rights in the DX Software and Domino Software as shown in the court document. HCL America, a subsidiary of HCLTech, is an authorized reseller of both software products.
Prior to IBM's sale of DX and Domino to HCLTech, IBM licensed DX and Domino to one or more Atos entities under what is known as an enterprise license agreement (ELA). Under these enterprise agreements, IBM customers can make “catalog purchases” that allow an amount to be prepaid, and the customer can later decide which IBM programs to license under it. Following the divestiture of DX, Domino and other IBM software products to HCLTech under the APA, HCL began communicating with Atos and other business users to better understand their requirements for DX, Domino and associated software updates, as per shown in court records. HCL alleged that Atos used DX and Domino for its own benefit, allowing the latter to receive substantial revenues and benefits without compensating HCL America.
When TOI contacted HCLTech, the company declined to comment as the matter is sub judice, while Atos said it will not comment on ongoing legal proceedings.

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