The Federal Court has ruled Qudos Bank has reasonable grounds to believe a contracted platform developer had infringed its rights. It ordered IT company Infosys to provide source code in response to claims of copyright infringement, breach of contract and misuse of confidential information.
Qudos had engaged Infosys to build a fully integrated banking platform, including core banking, customer relationship management, online banking, mobile application and other systems.
The bank commenced preliminary discovery proceedings against the developer in November, after it feared that Infosys was misusing its information for developing similar software for Australian Military Bank.
Infosys has already provided the court with some documents and computer code as part of the action, but resisted producing other documents Qudos sought.
The developer has now been ordered to produce documents recording the development and preparation of the AMB software and additional source code for two Infosys software projects.
In the 20 May judgement, Justice Stephen Burley said there were “common elements within the structure” of the AMB and Qudos codes, with “unexplained references to Qudos” in the AMB code.
Justice Burley found the bank had reasonable grounds to believe its rights had been violated, adding Qudos could not reasonably determine whether or not to commence further legal action against Infosys.
“During the period Infosys was working on the Qudos Bank contract we became aware of striking similarities between the software developed for our project and the AMB project,” Andrew Leithhead, chairman, Qudos Bank said.
“This made us very concerned that our intellectual property may have been misused and our confidence violated.
“We viewed this very seriously and started legal action seeking information to determine whether our copyright had been infringed, our contract terms had been breached and confidential information misused.”
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