An India-based information technology Goliath has won a federal trademark infringement lawsuit against a David-sized Plainview information technology firm, requiring the local company to change its name.
Infosys Ltd. of Bangalore, India, which has nearly $11 billion in annual revenue, filed suit in April 2017 against Long Island firm Infosys International Inc., which has operated under that name for 28 years. The Indian company argued in U.S. District Court in Central Islip that the local firm’s name “has caused actual consumer confusion” and that the Indian company has been “damaged and will continue to be irreparably harmed unless the conduct at issue is enjoined.”
Publicly traded Infosys Ltd. was India’s 20th largest company based on 2017 revenue, according to the Economic Times of India.
Privately owned Infosys International, an information technology consultancy, had an estimated 65 employees and estimated annual revenue of $8.5 million as of July 2018, according to a Dun & Bradstreet Inc. report.
The Indian Infosys, which offers information technology products and services, has operated under its name in the United States since 1981, according to court filings.
The company that would eventually become the local Infosys was founded in Commack in 1986 out of the bedroom of Raj Mehta, who is the company’s chief executive.
“We’ll be changing our name, hopefully soon,” Mehta said in an interview Tuesday. A new name has not been chosen yet, but the company is "still in the process" on deciding on a new name, he said: "We do have a few months."
Attorneys with Infosys Ltd. did not respond to requests for comment.
According to a permanent injunction issued earlier this month, Infosys International is prevented from using the name Infosys or any name “confusingly similar” in connection with its products or services. The two parties also agreed to a confidential settlement, court document said.
Michael C. Cannata, a law partner with Uniondale-based Rivkin Radler, said that in recent years there has been a “marked uptick in firms in general enforcing their intellectual property rights.”
For companies that have judgments against them, the impact can be long-lasting.
“By going through the rebranding process, you’re going to lose whatever goodwill you may have generated in the brand already,” said Cannata, who is co-chair of the Trademark Law and Practice Committee of the New York Intellectual Property Law Association.
Infosys International has done work for the Nassau County Department of Health and Human Services, the U.S. military and the former Astoria Federal Savings & Loan, according to the company’s website.