Hexaware Technologies shares surged more than 4% on Friday, June 12, following the company's disclosure of a favorable legal development in the United States. According to CNBC TV18, the market response reflects investor confidence in the court's ruling that effectively set aside the principal allegations underpinning the litigation. The United States District Court for the Northern District of Illinois dismissed the federal patent-related claims against the company, providing significant relief to Hexaware's operations and market position.
The United States District Court for the Northern District of Illinois dismissed all claims in the complaint filed by Natsoft Corporation and its affiliate, Updraft, LLC, against Hexaware Technologies and its subsidiary, Hexaware Technologies Inc. The dismissal occurred on 09 June 2026 and encompassed Natsoft's patent infringement claims spanning nine patents across two patent families. As per Hexaware's latest regulatory filing, the court ruled that the patents in question covered abstract subject matter and were therefore ineligible for patent protection under US law. The complaint covered nine patents across two patent families and named Hexaware Technologies Ltd and its US subsidiary as defendants, with 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 $500 million. The **court's decision turned on a fundamental deficiency in Natsoft's patents, finding that the asserted patents claimed broad, abstract ideas rather than any specific, concrete invention, making them ineligible for patent protection under U.S. law.
The Court's decision was based on a fundamental deficiency in Natsoft's patents. The Court found that the asserted patents claimed broad, abstract ideas rather than any specific, concrete invention, making them ineligible for patent protection under U.S. law. This finding addresses the breadth and validity of Natsoft's patents rather than the originality of Hexaware's platforms. According to Hexaware's latest regulatory filing, the court concurred that the asserted patent claims are not eligible for patent protection as they relate to abstract subject matter. The company emphasized that the court's finding concerned the breadth and validity of Natsoft's patents and not the originality of Hexaware's platforms. In contrast to Natsoft's patents, Hexaware's platforms are built on specific, concrete engineering, years of in-house research and development, and significant financial investment—so specific that Hexaware has itself obtained U.S. patent protection for methods embodied in its Amaze and Tensai platforms, with an additional US patent related to Tensai recently allowed and expected to be issued. Hexaware stated that these platforms came from their own research and from years of investment by their own engineers, and maintained that they do not infringe any Natsoft or third-party intellectual property.
Because the federal patent claims were dismissed, the Court declined to retain jurisdiction over the related state-law claims, which were dismissed as well. The Court has granted the plaintiffs time to file an amended complaint adding a new federal claim, and if they do not, the Court is expected to enter final judgment. As per Hexaware's latest regulatory filing, 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. The litigation has caused no material change to the Company's operations, ability to serve customer commitments, partner programs, or financial position, and the Company anticipates none going forward. If no amended complaint is filed, the court is expected to enter final judgment, as confirmed by Hexaware in its regulatory filing. The company stated it will continue to closely monitor the matter and take appropriate action as required.
According to Hexaware's latest regulatory filing, the company maintains that its platforms were developed through in-house research and development and substantial financial investment. Srikrishna Ramakarthikeyan, Executive Director and CEO of Hexaware, stated that "We have been clear about our confidence since the day this suit was filed, and the Court's decision reflects why we held it. These platforms came from our own research and from years of investment by our own engineers. The Court found that what Natsoft asserted was too abstract to be a patentable invention—and Hexaware holds patents of its own precisely because our work is specific, real, and original. Our clients trusted us through this process, and we will keep earning that trust. If this case continues in any form, our response will be the same." The company emphasized that these platforms came from their own research and from years of investment by their own engineers, and maintained that they do not infringe any Natsoft or third-party intellectual property. Hexaware said it has obtained US patent protection for methods embodied in its Amaze and Tensai platforms, with an additional US patent related to Tensai recently allowed and expected to be issued. The company highlighted that Hexaware's platforms, which include Amaze®, Tensai®, and RapidX®, were built on specific, concrete engineering and substantial financial investment, contrasting them with the abstract nature of Natsoft's claims.
The lawsuit was filed by Natsoft on September 23, 2025, alleging patent infringement against Hexaware and its US subsidiary, with Natsoft having sought damages of $500 million. When the lawsuit was filed, Hexaware denied the allegations and called the claims without merit. In an October 2025 statement, the company said it did not expect the litigation to have any material financial or operational impact. In its June 12 statement, Hexaware confirmed that the litigation had caused no material change to its operations, ability to serve customer commitments, partner programmes or financial position, and did not anticipate any such change. The dispute centered on intellectual property claims around Hexaware's Amaze platform for legacy application modernisation, Tensai for automation and assurance functions, and RapidX for legacy-code analysis and modernisation workflows. The Court has granted Natsoft the opportunity to file an amended complaint within a prescribed timeline, potentially adding a new federal claim. Hexaware called the lawsuit meritless when it was filed and said it expected to be vindicated; today's ruling follows the motion to dismiss the Company filed in December 2025.
