Litigation Update
U.S. Federal Court Dismisses Natsoft Patent Infringement Claims Against Hexaware Technologies
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Hexaware Technologies announced that the United States District Court for the Northern District of Illinois has dismissed all federal patent infringement claims filed by Natsoft Corporation and Updraft LLC. The court held that the asserted patents were directed toward broad abstract ideas rather than patent-eligible inventions. Related state-law claims were also dismissed, although plaintiffs have been granted an opportunity to file an amended complaint.
PRICE-SENSITIVE TRIGGER
Event: Dismissal of patent infringement litigation filed by Natsoft Corporation and Updraft LLC against Hexaware Technologies and its subsidiary.
Type: Litigation Update / Court Ruling
Impact: Positive
Immediate Effect: The principal patent infringement claims forming the basis of a lawsuit initially seeking damages of approximately US$500 million have been dismissed by the court, significantly strengthening Hexaware’s legal position.
Key Metrics:
- Original Claim Amount: US$500 million
- Patents Involved: 9 patents across 2 patent families
- Court Decision Date: June 9, 2026
- Federal Patent Claims: Dismissed
- Related State Law Claims: Dismissed without substantive adjudication
Highlight:
- U.S. Federal Court dismissed all principal patent-related claims that formed the basis of a US$500 million lawsuit against Hexaware.
What Happened ?
Hexaware Technologies disclosed that the United States District Court for the Northern District of Illinois dismissed all federal patent infringement claims filed by Natsoft Corporation and Updraft LLC.
The court concluded that the patents asserted by Natsoft were directed toward abstract concepts rather than specific patent-eligible inventions under U.S. law. As a result, the court dismissed the patent claims spanning nine patents across two patent families.
Following dismissal of the federal claims, the court also declined to retain jurisdiction over related state-law claims, including contractual and business claims, leading to their dismissal as well.
While the plaintiffs have been granted an opportunity to file an amended complaint with a new federal claim, Hexaware stated that the litigation has not materially affected its operations, customer commitments, partner relationships, or financial position.
Key Details
U.S. Patent Litigation Update:
- Natsoft Corporation and Updraft LLC had alleged patent infringement and breach of contract against Hexaware.
- Original litigation involved nine patents across two patent families.
- The lawsuit initially carried a claim value of approximately US$500 million.
- U.S. District Court for the Northern District of Illinois dismissed all federal patent-related claims.
- Court held that the asserted patents covered abstract ideas rather than specific inventions eligible for patent protection.
- Related state-law claims were also dismissed after the court declined jurisdiction.
- Plaintiffs have been permitted to file an amended complaint within the prescribed timeline.
- Hexaware maintains that its platforms, including Amaze®, Tensai® and RapidX®, are based on proprietary engineering and innovation.
- The company highlighted that it owns U.S. patents related to its technology platforms.
Note:
- The dismissal addresses the validity and patent eligibility of Natsoft’s asserted patents and does not constitute a finding against Hexaware’s technology platforms or business practices.
Risk Analysis
Summary:
- The ruling substantially reduces litigation risk; however, the matter is not completely closed because plaintiffs retain the right to amend and refile certain claims.
Key Risks:
- Plaintiffs have been granted time to file an amended complaint.
- Litigation may continue if new federal claims are introduced.
- Legal proceedings in U.S. courts can remain prolonged and expensive.
- Future appeals or revised filings cannot be ruled out.
- No operational or customer impact has been reported by the company.
Worst Case Scenario:
- Natsoft could file an amended complaint introducing revised federal claims, resulting in continued litigation and associated legal costs.
Risk Level: Low
Company Commentary
- The court’s ruling validates Hexaware’s position that the lawsuit lacked merit.
- Hexaware stated that its technology platforms are based on specific engineering innovation and substantial R&D investment.
- The company emphasized that it owns and continues to obtain U.S. patent protection for its own technologies.
- Management believes the ruling reflects the strength of its legal defense.
- Hexaware stated that the litigation has caused no material impact on operations, customer commitments, partner programs, or financial position.
- The company will continue monitoring developments and take appropriate actions if required.
Official Exchange Filing: Hexaware Technologies Limited
