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Full Briefing on New Court Revelations Raise Stakes for Satyam in Upaid's US Fraud Case

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  London June 2nd, 2008 - Online and mobile payments service leader, Upaid Systems, has today used court admissions by senior Satyam executives to broaden its US fraud case to include claims that Satyam failed to provide good title to intellectual property it developed for Upaid in the late 1990's, intentionally misleading Upaid in the process.

The amended Upaid complaint arises from a series of admissions made by senior Satyam executives during the course of its recent failed attempts in the London High Court and Court of Appeal to impede Upaid's fraud case in Texas. These admissions included revelations that, during the period when the forgeries were perpetrated, and despite earlier representations to the contrary, Satyam employees had not in fact been required by the company to transfer ownership of work produced during their employment by Satyam 

Upaid contends that in industries generating intellectual property such as the IT outsourcing industry, it is a critical requirement that the outsourced service provider has incontestable documentation of its ownership of the intellectual property that its employees produce for its customers.  Otherwise no customer could expect good title to the intellectual property they purchase from such a company.

Joanne Hunter, Upaid's spokesperson commented, "These new revelations are alarming. Quite distinct from the forgery and fraud which occurred in 1999, about which there has been considerable media coverage and comment recently, it is now clear that Upaid's case goes well beyond the forgeries and exposes serious systemic deficiencies in Satyam's business practices and corporate governance,".

Throughout its relationship with Upaid, Satyam repeatedly assured Upaid that it had good title to the goods and services it was providing to Upaid. It has now been admitted in the High Court by senior Satyam executives that during much if not most of the 1990's, this was not, in fact, the case. It is now clear that Satyam sold to Upaid intellectual property and products which they themselves knew they did not own.

In the late 1990's Satyam was Upaid's sole outsourced IT service provider. "First they failed to ensure the critical chain of title for their customer. Then they produced forged documents to that customer which they knew at the time would be used in filings with the US Government. Then they attempted to cover the whole thing up a few years later, when all this got exposed, instead of helping Upaid put things right and meet their basic obligations of providing good title to a customer" Ms. Hunter continued.

Satyam has so far refused all requests for assistance, spending more than 12 months in a futile attempt to avoid the consequences of its own actions and escalating the damage to Upaid's business in the process.

"Despite repeated requests to Satyam's leadership for help from Upaid since December 2006, Satyam has so far refused to take the actions necessary to repair the defect of title. Satyam's continuing failure to correct title and forgery problems has caused Upaid enormous and escalating economic losses,"

Ms. Hunter concluded, "Upaid developed unique patent rights to a broad portfolio of mobile payment inventions of great worldwide value. With the dramatic growth in global mobile payment markets, Upaid's losses are escalating and will continue to do so unless and until Satyam repairs the damage they have done. Satyam's cover up has failed. It cannot escape its responsibilities with delaying tactics. Our shareholders and management are determined to press Satyam for as long as it takes to pay full damages for the forgeries and to deliver good title to the products and services we purchased from them".

About Upaid

 

Upaid is the mobile and online payments specialist. Applications range from the recharge of prepaid accounts via SMS, to electronic bill payment and presentment, to billing for mobile content. The Upaid platform supports a complete eco-system for mobile commerce, giving users the choice of an operator-driven or independent billing system.

Upaid holds a portfolio of over 1,000 granted patents in the arena of e- and m-commerce. We work with leading mobile operators and banks to enable recharge transactions, serving a user base of over 50 million consumers, processing 2 million transactions per month. Upaid has offices in the US, UK, and Brazil. Upaid is a registered trademark of Upaid Systems, Ltd.

 
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