Patent War: Apple Faces Two Defeats Against Masimo

Apple, and the Apple Watch in particular, faced significant legal challenges recently. A jury ruled against the tech giant, mandating it to pay $634 million to the health tech firm Masimo, while concurrently, the U.S. International Trade Commission announced plans to reassess the potential for an import ban on Apple Watches—a decision linked to issues regarding Masimo.

This ruling marks a notable win for Masimo, which has engaged in a prolonged legal battle against Apple.

In a statement to Yahoo Finance, a representative from Apple remarked that over the past six years, Masimo has pursued litigation in various courts, asserting over 25 patents, most of which have been deemed invalid. The current verdict pertains to a patent that Apple claims expired in 2022, specifically relating to historical patient monitoring technology.

In 2024, Apple opted to eliminate the blood oxygen monitor feature to navigate around the potential import ban. The redesigned Apple Watches now facing renewed scrutiny from the ITC are not the models found to have infringed upon Masimo‘s patents.

Although Masimo primarily develops technology for healthcare environments, it asserts that Apple has replicated its patented pulse-oximetry technology for the watch’s workout and heart-rate monitoring capabilities. Apple’s defense, claiming the patent expired in 2022 and that its watches are consumer devices rather than hospital tools, failed to persuade the jury.

Additionally, a November 14 ruling from the ITC indicates that the commission will investigate whether a workaround implemented by Apple to bypass a previous import ban infringes on a Masimo patent. The order states, “This proceeding does not afford an opportunity to relitigate other defenses that were, or should have been, litigated in the underlying violation investigation.”

The ongoing saga between Apple and Masimo has seen numerous developments, including a countersuit victory for Apple last year, where it was awarded $250 in damages after Masimo launched its own smartwatch. Apple’s claim centered on design patent infringements, with the ultimate aim of obtaining an injunction rather than seeking damages.

Tracing back to 2013, Apple initially sought collaboration with Masimo to develop watches capable of monitoring pulses and later recruited two former Masimo executives with significantly higher salaries. According to an article from the Los Angeles Times, this was only part of the story, as Masimo engineer Joe Kiani claimed that Apple recruited more than just two of his employees.

An article from 2023 in the Wall Street Journal elaborated on Apple’s strategies for approaching smaller companies like Masimo and engaging in practices perceived as similar to idea theft. “When Apple takes an interest in a company, it’s the kiss of death,” Kiani stated.

In 2020, Masimo filed a lawsuit for alleged theft of trade secrets, which resulted in a hung jury.