United States District Court, W.D. Wisconsin
OPINION AND ORDER
WILLIAM M. CONLEY, DISTRICT JUDGE.
date, this court has extensively addressed plaintiff Epic
Systems Corporation's claims against defendants Tata
Consultancy Services Limited (“TCS”) and Tata
America International Corporation (“TAIC”),
including a jury trial on those claims. Over a year after
plaintiff filed its complaint, however, defendants filed
counterclaims for federal and state antitrust violations,
tortious interference and misappropriation of trade secrets.
The court severed those counterclaims and stayed all
proceedings pending a decision on plaintiff's motion to
dismiss. (Pl.'s Mot. (dkt. #326); 3/2/16 Op. & Order
(dkt. #538) 65.) For the reasons that follow, the court will
grant that motion in its entirety.
The EHR Market and Epic's Role in It
alleges that Epic is the dominant supplier of Electronic
Health Records (“EHR”), claiming to serve 54% of
patients in the United States. Epic has over 300 customers,
including large clients such as Kaiser Permanente, Mayo
Clinic, and Partners Healthcare. In May 2015, most heath care
providers in the United States were using Epic's system
(approximately 185, 000 providers).
market is concentrated. In March 2015, ten EHR vendors
accounted for 90% of the United States hospital market. Epic
was among the top three, which together have a market share
of nearly 60%
also contends that there are significant barriers to entry
and switching in the EHR market. Specifically, once
physicians or hospitals purchase an EHR system and load
patient date, a significant expense and effort is required to
switch to another software provider. TCS further alleges that
Epic has developed a “closed platform that discourages
interoperability and encourages customers to use only
Epic's systems.” (Countercl. (dkt. #295) ¶
58.) TCS further alleges that Epic falsely claims that the
lack of interoperability is endemic to the industry, rather
than specific to Epic's software. (Id. at
TCS's Healthcare Software
2006, TCS partnered with Apollo Hospitals, India's first
corporate hospital, to develop a consistent, unified
information management system for all of Apollo hospitals.
First marketed in 2009, this system is named Med Mantra.
Recently, TCS India has been developing a spin-off of Med
Mantra called TCS-HIS. TCS-HIS is a more generic derivative
of Med Mantra, with Apollo-specific functionality removed,
making it more appealing to a broader range of Indian
healthcare entities. TCS, however, alleges that “Med
Mantra and TCS-HIS are not suitable for deployment in the
United States EHR Market because of the very different nature
of the U.S. healthcare system.” (Id. at ¶
TCS “has explored customizing certain modules of Med
Mantra to meet the specific requirements of clients in the
U.S.” (Id. at ¶ 92.) Specifically, TCS
created a laboratory management software system for a U.S.
client, DaVita. (Id. at ¶¶ 93-97.)
“Although TCS does not actively market the DaVita
product in the U.S., TCS would, of course, be willing to work
with a U.S. customer to design and build a similar
solution.” (Id. at ¶ 98; see also
Id. at ¶ 82 (“TCS has also developed
custom-built software solutions based on its clients'
specifications.”).) From this, TCS alleges that
“Epic and TCS are each creating products for the U.S.
healthcare marketplace, and those products are potential
alternatives for each other, [making] TCS and Epic are
competitors.” (Id. at ¶ 100.)
Epic and TCS's Relationship with Kaiser
about February 3, 2003, Kaiser Permanente entered into an
agreement wherein Epic licenses computer software to Kaiser.
This agreement was and is an important contract for Epic, as
Kaiser Permanente is the largest managed healthcare
organization in the United States. In furtherance of their
agreement, Epic provided Kaiser access to the its
“UserWeb, ” as well as the internet portal that
Epic maintains to provide training, software-related
documents and data, and other materials to its customers and
their consultants. The Epic-Kaiser agreement also include
provisions allowing third-party access to the UserWeb under
certain conditions by, for example, consultants to Kaiser.
also a service provider to Kaiser, including software. In
2011, Kaiser sought to expand TCS's role in testing
required as part of Kaiser's implementation and ongoing
maintenance of the its software. TCS's role was set forth
in a scope of work statement that expressly contemplated TCS
testing Kaiser's EHR Epic software. The end date of that
work was April 30, 2014.
about May 2011, Kaiser and TCS executives traveled to
Wisconsin to give a presentation to Epic on TCS's
abilities. “Immediately after the May 2011 presentation
by TCS, Epic's top-level executives decided to block TCS
from effectively providing [testing] services to Kaiser,
which Epic knew to be a very important engagement for TCS in
the healthcare space.” (Id. at ...