Latest chapter of $2 billion Apple Watch patent battle ends in mistrial

AppleInsider

The ongoing US District Court lawsuit from Masimo against Apple ended Monday with a mistrial after jurors couldn't reach a unanimous vote.

Apple Watch health technology targeted in lawsuit

Masimo is a medical firm suing Apple for stealing trade secrets to build the Apple Watch. It won its preliminary case with the International Trade Commission, but Masimo also brought its charges in front of the US District Court in April.

According to a tweet from Mark Gurman, that trial has ended in a mistrial. Earlier Monday, a Bloomberg report suggested that six of seven jurors had ruled in favor of Apple, but a unanimous vote was needed.

The Masimo v. Apple trial around patents for the Apple Watch/Health technologies ends in a mistrial. https://t.co/6kOzBtcF7i

-- Mark Gurman (@markgurman)

May 1, 2023

The judge told the jurors to continue deliberating, and that he wouldn't use a so-called "Allen charge" to force a verdict. Gurman didn't share the details of why the mistrial occurred, but it seems likely that it is due to the jury not reaching a unanimous verdict.

"We thank the jury for their careful consideration in this case," Apple said in a statement to AppleInsider. "We deeply respect intellectual property and innovation and do not take or use confidential information from other companies. We are pleased that the court correctly rejected half of the plaintiffs' trade secret allegations, and will now ask the court to dismiss the remaining claims."

This latest development doesn't bode well for Masimo's case, but it isn't the end. The trial will likely be on hold until the plaintiffs decide how to move forward.

"While we are disappointed that the jury was unable to reach a verdict, we intend to retry the case and continue to pursue legal redress against Apple," a Masimo spokesperson shared in a statement to AppleInsider. "As we begin that process, the United States Trade Commission is scheduled in the coming months to decide whether to ban the importation of certain models of the Apple Watch, following a ruling last year by an Administrative Law Judge that Apple infringed one of Masimo's patents for pulse oximetry."

Masimo sought nearly $2 billion in damages, and depending on the outcome, the trial could have resulted in an Apple Watch ban. Read about the witness testimonies from earlier in the trial to understand the scope of Masimo's accusations.

Update May 1, 7:35 p.m. EST: Added statements from Apple and Masimo.

Read on AppleInsider

9secondkox2

Going to go on forever. 

laytech

I'm tired of patent trolls. Some are funded by investment companies, hoping to make a quick buck. Ultimately, it's the lawyers that win at the end of the day, and everyone else suffers because of it. We are losing our way. 

Ofer

laytech said:

I'm tired of patent trolls. Some are funded by investment companies, hoping to make a quick buck. Ultimately, it's the lawyers that win at the end of the day, and everyone else suffers because of it. We are losing our way. 

Masimo isn’t a patent troll. They’re suing based on actual tech which they developed. I’m not saying that they’re right in their assumption that Apple stole their tech. But they’re not just sitting on a patent for something they didn’t actually develop.

chasm

laytech said:

I'm tired of patent trolls. Some are funded by investment companies, hoping to make a quick buck. Ultimately, it's the lawyers that win at the end of the day, and everyone else suffers because of it. We are losing our way. 

You really should have read the linked earlier articles. Masimo is absolutely not a patent troll, they are a major medical technology company who developed and patented these technologies. That said, they are down to one possible case of infringement on a single Masimo patent for pulse oximetry, and the judge here can still rule against them on that (taking a cue from the way the jury was leaning), so Masimo seems to be on shaky ground with everyone but the ITC, which will have to reconsider their own judgement if the federal court wipes out Masimo's remaining charge.

I expect that if that happens, Masimo will have to accept a settlement in order to drop the ITC case.

charlesn

Not only is Masimo not a patent troll, as others have stated, but Apple's behavior here was pretty sleazy. Unfortunately for Masimo, sleazy doesn't mean illegal. After expressing interest in possibly incorporating Masimo pulse oximetry tech into Apple Watch, Apple instead poached two top execs with deep knowledge of the tech by doubling their salaries and offering millions in stock options. It sucks that a behemoth with mountains of cash like Apple gets to crush a smaller innovator like Masimo, but again, that's not necessarily illegal to do. There can be no doubt that the knowledge these execs had of Masimo's pulse oximetry tech helped Apple to develop what it uses in the Apple Watch--Apple didn't back up the cash truck for them just because they had good people skills--but as long as Apple's version doesn't violate any of Masimo's patents, I"m not sure what recourse there is for Masimo. 

Fidonet127

charlesn said:

Not only is Masimo not a patent troll, as others have stated, but Apple's behavior here was pretty sleazy. Unfortunately for Masimo, sleazy doesn't mean illegal. After expressing interest in possibly incorporating Masimo pulse oximetry tech into Apple Watch, Apple instead poached two top execs with deep knowledge of the tech by doubling their salaries and offering millions in stock options. It sucks that a behemoth with mountains of cash like Apple gets to crush a smaller innovator like Masimo, but again, that's not necessarily illegal to do. There can be no doubt that the knowledge these execs had of Masimo's pulse oximetry tech helped Apple to develop what it uses in the Apple Watch--Apple didn't back up the cash truck for them just because they had good people skills--but as long as Apple's version doesn't violate any of Masimo's patents, I"m not sure what recourse there is for Masimo. 

Sleazy based upon what exactly? Just because Apple talks with people, doesn't mean Apple is using their technology. Also using experts in a field, doesn't mean their previous employer's technology was used. Apple does have their own patents in this field and as such have the right to use those patents. So far Masimo hasn't proved anything. There is lots of ways to do things in code and hardware.

larryjw

Apple didn't poach anyone. The company didn't negotiate for their tech and Apple developed their own tech to perform the same task. Ideas are not patentable. And, it's not sleazy. Apple hired Masimo experts to develop Apple's version. I'm sure the experts are happy with their decision -- that got their ideas into a successful product which likely would never have happened under Masimo. 

Apple buys a lot of small companies because they want to use their tech and hire their people. But, these companies must agree to be acquired. Masimo didn't. 

It would be sleazy if Apple acquired companies in order to deep-six their tech. That didn't happen here. 

ronn

Maximo better settle soon. It's not looking good for them at all. They'll eventually get nothing but a large legal bill should they try to go forward with another trial. And that's only if Apple doesn't squash the last Maximo patent in play.

charlesn

larryjw said:

Apple didn't poach anyone. 

Sorry, I'm not here to help with remedial reading. Search "Apple hires Masimo exec." While you're at it, also search "When Apple Comes Calling, It's the Kiss of Death" which lays out the broader pattern of this behavior. Again, as I carefully point out, none of this is necessarily illegal. And I actually don't believe that Apple has copied Masimo's patented IP. But for smaller companies that have innovated a product from the ground up, interest from Apple does come with an unspoken gun pointed at their head. Apple can always afford to hire key employees for vast sums that the smaller company can't possibly afford, while also defending those same employees should any legal issues with non-compete clauses arise. Sure, you can dismiss this under, "Well, that's just business," but imagine yourself as that small company innovator who just lost your key employees. 

Fidonet127

charlesn said:

larryjw said:

Apple didn't poach anyone. 

Sorry, I'm not here to help with remedial reading. Search "Apple hires Masimo exec." While you're at it, also search "When Apple Comes Calling, It's the Kiss of Death" which lays out the broader pattern of this behavior. Again, as I carefully point out, none of this is necessarily illegal. And I actually don't believe that Apple has copied Masimo's patented IP. But for smaller companies that have innovated a product from the ground up, interest from Apple does come with an unspoken gun pointed at their head. Apple can always afford to hire key employees for vast sums that the smaller company can't possibly afford, while also defending those same employees should any legal issues with non-compete clauses arise. Sure, you can dismiss this under, "Well, that's just business," but imagine yourself as that small company innovator who just lost your key employees. 

You might not of put your first sentence in. First article is normal business. Why shouldn't Apple, etc offer more pay to attract experts? Second article is allegations that Apple kills small businesses. Problem is it is a small list. Are these the only businesses Apple have contacted and it is a 100% kill rate, or is it more likely Apple contacts lots more businesses and this article is only a small subset? Again ideas are not patentable and there are many ways to do things. Could be the ideas were good, but not what Apple wants to do exactly.

danox

Masimo's is a medical tech/device company whose products probably were the size of a small refrigerator, if you were them, you too would sue Apple, if Apple or any company come along and designed something that basically wiped out your product line and fits on someone’s wrist, Apple has, several suits against them where someone has sued them for making their product obsolete.

The more medical monitoring instrument tech, that Apple adds to the watch, will conversely lead to more lawsuits in the future, most of the old line medical device companies are small companies that make very large relatively immobile, very expensive pieces of equipment, and most do not have the software and hardware skills, and the money to miniaturize their products fast enough if at all. Their experience will be equivalent to the old horse and buggy companies.

The next case coming up will be blood pressure monitoring on your Apple Watch, several companies will come out of the woodwork, claiming their pot of gold from Apple.

StrangeDays

charlesn said:

larryjw said:

Apple didn't poach anyone. 

Sorry, I'm not here to help with remedial reading. Search "Apple hires Masimo exec." While you're at it, also search "When Apple Comes Calling, It's the Kiss of Death" which lays out the broader pattern of this behavior. Again, as I carefully point out, none of this is necessarily illegal. And I actually don't believe that Apple has copied Masimo's patented IP. But for smaller companies that have innovated a product from the ground up, interest from Apple does come with an unspoken gun pointed at their head. Apple can always afford to hire key employees for vast sums that the smaller company can't possibly afford, while also defending those same employees should any legal issues with non-compete clauses arise. Sure, you can dismiss this under, "Well, that's just business," but imagine yourself as that small company innovator who just lost your key employees. 

Yeah no, what you’re describing is what we call “the free market” here in the free world. It’s within my rights as labor to go work for whoever I please, including competitors of my employer. Go back to Russia. 

gatorguy

StrangeDays said:

charlesn said:

larryjw said:

Apple didn't poach anyone. 

Sorry, I'm not here to help with remedial reading. Search "Apple hires Masimo exec." While you're at it, also search "When Apple Comes Calling, It's the Kiss of Death" which lays out the broader pattern of this behavior. Again, as I carefully point out, none of this is necessarily illegal. And I actually don't believe that Apple has copied Masimo's patented IP. But for smaller companies that have innovated a product from the ground up, interest from Apple does come with an unspoken gun pointed at their head. Apple can always afford to hire key employees for vast sums that the smaller company can't possibly afford, while also defending those same employees should any legal issues with non-compete clauses arise. Sure, you can dismiss this under, "Well, that's just business," but imagine yourself as that small company innovator who just lost your key employees. 

Yeah no, what you’re describing is what we call “the free market” here in the free world. It’s within my rights as labor to go work for whoever I please, including competitors of my employer. Go back to Russia. 

You're arguing a different point. Yes, of course you can choose to go and apply at Apple, or Google, or Fred's Market wheterh you have a current employer or not. What the OP was arguing is the antoi-competitive flavor of an employer inviting a small company to discuss their product or tech, then deciding it might be less expensive to approach a half dozen key employees and offer them to-good-to-refuse employment contracts instead of licensing that technology or buying the company from it's founders/owners. 

All the big techs are in the power position. If they want what you as a small company invented and are trying to sell they can get it from you whether willing or not. If they think you might be asking for more than they're willing to give you then they can slip in the back door and hire away the keys to your company, effectively absconding with your tech or at least minimally negating your small company's ability to market its products. 

Approaching an employer for a job as a free individual, what you are interjecting, is a far different scenario than the wealthy employer coming to get my best and brightest, paying unreasonable recompense I'm unable to match, if they believe you might someday become a potential competitor to some insignificant part of their business. Nip off the buds before they blossom. In fairness Amazon, Google, Facebook, Qiualcomm, Apple and other rich companies have done this several times before. It's nothing new or uniquely Apple.

So yup it's an age-old problem of the wealthy taking advantage of the small entrepreneurs. The story's premise seems right: If Apple comes calling then beware. Being on their radar may be the kiss of death for your dreams and investment. 

Leveling the playing field a tiny bit through a little stouter competition rules is fine by me. We had to do it with railroads. We had to do it with phones. Now we probably need to do it with big tech. It doesn't happen often, maybe once in a hundred years,  but sometimes a new industry attempts to gain too much control over commerce, and artificially limits development in the larger economy for their own profit motives. When they factually acquire the power to do so then IMO it's time to put some checks in place.