Masimo is expanding its legal fight against Apple, filing a patent-infringement complaint at the U.S. International Trade Commission (ITC) that seeks to ban imports of the Apple Watch Series 6.
Masimo claims that Apple Watchs Series 6 infringes five patents for devices that use light transmitted through the body to measure oxygen levels in blood.
Masimo, which develops signal-processing technology for health-care monitors, and its spinoff, Cercacor Laboratories Inc., first sued Apple in January 2020, accusing it of stealing trade secrets and improperly using Masimo inventions related to health monitoring in its Apple Watch.
The patents in the federal case are being reviewed by the U.S. Patent and Trademark Office after Apple argued they didn’t cover new inventions. The judge put that aspect of the case on hold until the reviews are completed.
Unlike a district court, the trade agency won’t delay consideration of the patent complaint and it typically completes investigations in 15-18 months.
The dispute is likely to end in a settlement that could net Masimo between $50 million and $300 million a year in royalties, Bloomberg Intelligence analyst Tamlin Bason said in a note Tuesday. Masimo reported $1.14 billion in sales last year.
MacDailyNews Take: Obviously, Masimo is asking for the moon while angling for the best settlement they can get. Last quarter, Apple earned roughly $1 billion per day, so the company is well-positioned to pay royalties in the range estimated by Bason.