Exafer Ltd. v. Microsoft (Fed. Cir., March 6, 2026) 2024-2296

This episode details a legal reversal by the United States Court of Appeals for the Federal Circuit in a patent infringement lawsuit between Exafer Ltd. and Microsoft Corporation. Initially, a lower court excluded Exafer’s damages expert testimony because it used unaccused virtual machines as the financial base for calculating royalties. The appellate court disagreed, ruling that the expert's methodology was sound because it established a causal connection between the patented network optimizations and Microsoft’s ability to host more virtual machines. Consequently, the court overturned the exclusion of the expert report and vacated the summary judgment previously granted to Microsoft. This decision reinstates Exafer's ability to seek a remedy for the alleged infringement of its data-forwarding and network-optimization patents within the Azure Platform.

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