In a relief to Cognizant Technology Solutions Corp, the Supreme Court on Monday stayed part of a Bombay High Court ruling that had barred the Nasdaq-listed IT services firm from using its hexagonal logo in India.

The order relates to Cognizant’s trademark dispute with Bengaluru-based fintech firm Atyati Technologies Pvt. Ltd.

In August, a division bench of the Bombay High Court set aside a single-judge order from June 2024 allowing Cognizant to continue using the logo during the course of the trademark infringement case.

On Monday, Supreme Court Justices Dipankar Datta and R. Mahadevan stayed the division bench’s interim order and directed the single-judge bench of the Bombay High Court to expeditiously decide the case, preferably within six months. The top court said the division bench had erred in setting aside the single-judge bench’s order.

This means Teaneck, New Jersey-headquartered Cognizant, which employs nearly three-fourths of its global workforce in India, can continue using its logo until the case is resolved.

Trademark dispute background

The trademark battle began in 2023 when Atyati Technologies filed an infringement suit saying it had been using its orange hexagonal honeycomb logo since 2019. Cognizant’s hexagonal honeycomb logo is blue. Both logos are markedly different but have similarities.

Cognizant countered that Atyati had been aware of its logo since 2022, but claimed it only learned of it in October 2023, alleging that Atyati suppressed this fact when it initially sought an injunction.

In March 2024, a single-judge bench of the Bombay High Court restrained Cognizant from using the logo, citing possible public confusion and Atyati’s strong case. However, in June 2024, another judge lifted the ban, noting records showing Cognizant had been using the logo since 2022.

On appeal, a division bench of the Bombay High Court led by Chief Justice Alok Aradhe and Justice Sandeep V. Marne restored the injunction on 26 August this year.

Following that order, Cognizant stopped using the contested logo on its website and social media handles. The company maintains a detailed seven-page guideline on logo usage.

More disputes and growth concerns

This is not Cognizant’s first legal tussle in India. In recent years, the company has been involved in multiple high-profile disputes.

In September 2023, Cognizant filed a case against former Wipro Ltd chief financial officer Jatin Dalal, seeking damages of ₹25.1 crore over alleged violations of an employment contract.

A similar case was filed in New Jersey against Mohd Ehteshamul Haque, who joined Cognizant shortly after leaving Wipro, where he was a senior vice-president.

Both cases were settled, with Cognizant paying Dalal ₹4.2 crore and reimbursing legal fees; terms of the Haque settlement remain undisclosed.

Cognizant is also involved in a trade secret dispute with Bengaluru-based Infosys Ltd over a healthcare software, with a Dallas court directing the companies to settle disagreements on information-sharing prior to trial.

Cognizant reported $5.25 billion in revenue for the April-June quarter, up 2.54% sequentially and 8.14% year-on-year. Banks and financial institutions contributed more than three-fifths of the company’s $130 million incremental revenue.

Despite these gains, concerns remain about Cognizant’s ability to grow organically, as much of its recent growth was driven by a single acquisition.