Hexaware gets relief as US court dismisses USD 500 mn patent suit claims

IT services firm Hexaware Technologies on Friday said a US federal court has dismissed patent infringement claims brought against it by Natsoft Corporation and Updraft LLC in a lawsuit that initially sought damages of USD 500 million.

In a regulatory filing, Hexaware said the United States District Court for the Northern District of Illinois dismissed the federal patent-related claims after finding that the patents asserted by the plaintiffs were not eligible for patent protection as they related to “abstract subject matter”.

The litigation, first disclosed by the company in October 2025, involved allegations of patent infringement and breach of contract by Natsoft Corporation and Updraft LLC, with an initial claim amount of USD 500 million.

"The Court concurred that the asserted patent claims are not eligible for patent protection as they relate to abstract subject matter. As a result, the principal claims forming the basis of the litigation stand dismissed," Hexaware said in the filing.

The company said that following the dismissal of the federal claims, the court declined to exercise jurisdiction over related state law claims, including contractual and business claims, resulting in their dismissal without substantive adjudication at this stage.

According to the company, the complaint covered nine patents across two patent families and named Hexaware Technologies Ltd and its US subsidiary as defendants.

The court ruled that the patents claimed broad, abstract ideas rather than specific inventions and were therefore ineligible for patent protection under US law.

The court has, however, granted the plaintiffs an opportunity to file an amended complaint within the prescribed timeline and add a new federal claim.

If no amended complaint is filed, the court is expected to enter final judgment, Hexaware said.

"We have been clear about our confidence since the day this suit was filed, and the Court's decision reflects why we held it," Hexaware Executive Director and CEO Srikrishna Ramakarthikeyan said in the statement.

The company maintained that its Amaze, Tensai and RapidX platforms are products of original engineering and substantial investment and do not infringe any Natsoft or third-party intellectual property.

Hexaware said the litigation has caused no material impact on its operations, customer commitments, partner programmes or financial position, and it does not anticipate any such impact going forward.