Satyam Settles Upaid Suit for $70M - Analyst Blog
Satyam Computer Services Ltd (SAY) is paying $70 million to Britain-based Upaid Systems Ltd in a patent suit settlement. Upaid, which offers solutions for payments via mobile phone, filed lawsuits in April 2007 for fraud, forgery and breach of contract.
Upaid filed the lawsuit in Texas following the revelation of alleged forged documents provided by Satyam, the technology services provider to the British firm, seeking more than $1 billion in damages.
Mahindra Satyam said it would pay $45 million within 10 days of receiving regulatory approval and $25 million within a year of the first payment.
The settlement requires Upaid to give Mahindra Satyam a worldwide royalty-free license on its patents, besides providing for the dismissal of all pending actions including the litigation between the companies pending in the U.S. court.
Earlier, the company announced key decisions pertaining to its Board. Mr Vineet Nayyar has been appointed as the Chairman of its Board and Mr M. Damodaran and Mr Gautam S Kaji have been appointed as additional directors, with immediate effect.
Consequently, the size of the Board has increased to 8 directors comprising 4 independent directors (including two nominee directors of the central government), 2 non-executive and 2 whole time directors. Mr Nayyar will also continue to operate as a whole-time director.
Satyam Computer Services Limited, also known as Mahindra Satyam, provides information technology services and business process outsourcing (BPO) services in North America, Europe, the Asia-Pacific, the Middle-East, Australia, Africa and South America. The company offers consulting, systems design, software development, system integration, and application maintenance services. Its services include application development and maintenance, consulting and enterprise business solutions, extended engineering solutions and infrastructure management services. Major competitors are Infosys Technologies Ltd (INFY) and Wipro Ltd (WIT).
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