In a significant legal setback, Apple has failed in its bid to overturn a $634 million jury verdict awarded to medical technology firm Masimo in a high-stakes patent infringement case centered on blood oxygen monitoring technology in Apple Watches.
A federal judge in California rejected Apple’s request to set aside the massive award, upholding the jury’s decision that the tech giant infringed on Masimo’s patents related to pulse oximetry features. The technology in question powers the blood oxygen (SpO2) sensing capabilities found in several generations of Apple Watch models.
Key Details of the Ruling
The court also determined that Apple misappropriated two out of 14 Masimo trade secrets. However, the judge stopped short of issuing a permanent injunction against Apple and barred Masimo from pursuing additional monetary damages on the trade secret claims.
Masimo, which has since become part of Danaher Corporation, had originally sought up to $3.1 billion in damages tied to the trade secret allegations. The company has already filed an appeal challenging the limitations on that portion of the case. Apple, for its part, has maintained that its engineers independently developed the health-monitoring features in question.
Background on the Dispute
The lawsuit dates back several years and highlights ongoing tensions between consumer electronics giants and specialized medical device companies. Masimo accused Apple of stealing proprietary technology originally developed for clinical-grade pulse oximeters and incorporating it into the Apple Watch, one of Apple’s most important wearable products.
The case gained extra attention after Apple faced regulatory scrutiny and sales restrictions on certain Apple Watch models in the U.S. due to a separate patent dispute (with another party). The Masimo verdict adds further pressure on Apple’s wearable division, which has become a key growth driver for the company.
Implications for Apple
This decision keeps significant legal and financial pressure on Apple as it continues to defend the core health features of its smartwatches. Investors will be closely watching:
• The ongoing appeal process
• Potential impacts on Apple Watch sales or required licensing deals
• Any broader effects on future product features
While $634 million represents a notable hit, it is manageable for Apple given its enormous cash reserves and overall market capitalization. However, repeated legal challenges in the wearables space could increase costs and slow innovation timelines.
Apple shares were little changed in after-hours trading following the news, reflecting the market’s view that the verdict, while unfavorable, was largely anticipated and already priced in to some extent.
MacDailyNews Take: Apple will appeal to a higher court as the battle over blood oxygen monitoring rights remains unresolved.
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Ever since the Franklin case Apple’s legal team has been useless. I’ve often wondered why Apple’s senior management has not fired the lot of them starting well over 35 years ago.