Federal Jury Finds Apple Infringed Masimo Patent

Verdict and Damages Awarded

A federal jury in California has determined that Apple violated a Masimo patent concerning its pulse oximetry technology, resulting in an award of $634 million in damages to Masimo, as announced by the company on Friday. Masimo emphasized the significance of this ruling in its ongoing commitment to safeguarding its innovations and intellectual property, which are vital for developing beneficial technology for patients. The company reiterated its dedication to defending its intellectual property rights in the future.

Apple’s Response and Appeal

In response to the jury’s decision, Apple has announced its intention to appeal the verdict. An Apple spokesperson stated that the company disagrees with the ruling, claiming it contradicts the facts. The spokesperson further noted that “Masimo is a medical device company that does not sell any products to consumers.” This legal dispute has been ongoing for several years, with Masimo alleging patent infringements by Apple in multiple court cases over the past six years, claiming more than 25 patents, most of which have been deemed invalid.

Impact of the U.S. International Trade Commission’s Findings

In 2023, the U.S. International Trade Commission (ITC) issued a limited exclusion order, confirming that Apple had indeed infringed on some of Masimo’s patents. In response to this finding, Apple introduced a redesigned blood oxygen feature in August for users of certain models of the Apple Watch Series 9, Series 10, and Apple Watch Ultra 2.

Analyst Insights on Appeal Timeline

Needham analyst Mike Matson has projected that it may take up to two years for Apple’s appeal in this patent litigation case to reach a resolution, which could postpone Masimo’s ability to collect the awarded damages. Matson noted that if and when Masimo ultimately receives the damages, it is likely to utilize the funds for share repurchases and debt repayment.

ITC’s New Proceedings

In a separate development, the ITC announced on Friday that it will initiate a new proceeding to assess whether the updated versions of Apple’s watches should be subject to an import ban, as detailed in a notice on the agency’s website.