Satyam-Upaid imbroglio: What's in store?

Raja Rajeshwari, CNBC-TV18

This has been a very intriguing case because they started out as a very small order for Satyam. The work that they have done is very small to the tune of USD 8-10 million only, but now it has taken a huge proposition embroiling Satyam in the case, because this was the work they started doing in 1996 itself and they reached a very loose memorandum for understanding that remains the big contexture for this case itself.

The background to this is when Upaid went and applied for a patent with the US officials, they were asked to provide other documents of the co-inventors. Satyam was also doing certain patent work for them, so two employees of Satyam, Mambakam and Govindrajlu, their documents were submitted by Satyam to Upaid and this was given by Upaid for the patent.

In 2005, when Upaid went and filed a case against Verizone and Qualcomm on patent infringement, Qualcomm had actually submitted documents where in it claimed that the original documents submitted by Satyam were forged, so that’s how this whole case unraveled from there.

Upaid has filed case in Texas, which Satyam has riled against for it to be heard in England. That was the final ruling heard yesterday and it will be finally heard in Texas itself.

Now the contention is on the numbers in each one's perspective. Satyam says the number could be very low because the revenues have been low, but Upaid on the other hand says the amount of losses borne because of the patent, are huge. Their number is above USD 1 billion dollars right now.

IT practitioners are of the view that if indeed Upaid comes in and proves that the two employee’s signature or the documents that were provided are indeed forged, then Satyam stands to loose but for the quantum, you need to wait and watch how this case unravels.