Infosys versus Times group: Who'll win this war?

On Monday, Infosys sent legal notices to The Times of India, The Economic Times and The Financial Express alleging that articles in these three newspapers had defamed the company. The notices gave the newspapers 24 hours to withdraw the articles from digital media, to carry corrigenda and to apologise – failing which they would be sued for Rs. 2000 crore each in damages.

Yesterday, we considered the implications of the suit, and suggested that, rather than accuse Infosys of bulling tactics, the media should welcome defamation suits and fight them – and request the courts to dispose of the suits expeditiously . What we were unsure of, at the time of writing the article, was whether the newspapers concerned would stand by their stories or capitulate.

Today, we learn that two of the three papers have decided to hold their ground.

“Bennett, Coleman and Co. Ltd (BCCL), publisher of The Economic Times and The Times of India, on Tuesday rebutted allegations made by Infosys Ltd that some articles published by the newspapers had defamed India’s second largest software services firm.

“We stand by our stories. They are factual, balanced and fully substantiated by quotes. There is nothing that we need to be defensive about,” said Anshuman Sharma, director (corporate legal), at BCCL,” The Mint reported.

Now the game is afoot – and the stakes are big. More importantly, this is a game with winners and losers, with no chance of a draw.

For the two titles from BCCL, in addition to the Rs.2000 crore, a more important asset – their credibility – is at stake. A loss in this case will see all companies and individuals who are criticized by the papers looking hard at each article and exploring the possibility of legal action.

On the flip side, a win in the case and we will see the credibility get a boost – especially as, in this case, it is Infosys which is the enemy. For Infosys, a loss will erode their credibility seriously, and any future defence of media criticism will invite cynical smiles. Every statement that emanates from Infosys will be torn threadbare.

Now that hard, public positions have been taken, neither side can back down. If the newspapers back down, it will be seen as an admission of irresponsible journalism. If Infosys backs down, the legal notices will be seen as an intimidatory, bulling tactic that failed.

With the BCCL statement, the toothpaste is out of the tube – and there’s no way it can be put back.