Hexaware Technologies Ltd, India’s tenth-largest IT services company, is facing one of the biggest patent lawsuits filed against an Indian IT firm. US-based Natsoft Corp. has sued Hexaware in an Illinois district court, seeking $500 million in damages for alleged breach of contract and patent infringement.
The lawsuit, filed on September 23, accuses Hexaware of illegally using application modernization software covered by nine patents developed by Updraft, a firm acquired by Natsoft in 2024. The complaint alleges Hexaware marketed and sold these tools without permission or compensation, even naming Updraft as a “partner” in a 2024 public report.
For Hexaware, the $500 million claim equates to almost four times its FY24 net profit of ₹1,174 crore ($132 million) and more than a third of its full-year revenue of $1.43 billion. Natsoft stated it has invested over $100 million in developing the patented tools over more than a decade, employing hundreds of engineers globally.
Natsoft’s suit includes 13 charges of patent infringement and breach of contract, and it has requested the court to bar Hexaware from using or marketing the disputed technologies. Hexaware, however, has denied receiving any official notice or communication regarding the case.
Industry experts note that beyond the financial implications, the case poses a significant reputational challenge. “Hexaware needs to reassure clients, employees, and investors that business continuity is unaffected. Managing the narrative is as critical as the legal outcome,” said Phil Fersht, CEO of HFS Research.
This legal battle comes at a time when Hexaware is already facing business headwinds, including project delays from major US clients and slipping down two places in the Indian IT rankings. The outcome of this case could have long-term implications for Hexaware’s global standing.
Summary:
Natsoft has filed a $500 million lawsuit against Hexaware Technologies in the US, alleging patent infringement and breach of contract over application modernization tools originally developed by Updraft. The claim amounts to nearly four times Hexaware’s FY24 net profit. While Hexaware denies receiving formal notice, the case presents both financial and reputational risks at a time when the company is already under business pressure.
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