Masimo's claims falter as Apple defends smartwatch designs in court

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in Apple Watch

Apple and Masimo's patent and trade secret dispute has intensified through lawsuits as Apple defends its innovations and Masimo's claims are rejected in court.

A person wearing an Apple Watch Ultra displaying the date October 4, a clock, and a music player showing Ocean Avenue by Yellowcard.
Apple Watch Ultra



Apple and medical equipment maker Masimo have been embroiled in lawsuits highlighting the high-stakes nature of intellectual property in technology. Initially rooted in Masimo's allegations of trade secret misappropriation, the dispute has expanded to include patent infringement claims across multiple states and legal venues.

The bench trial starts Tuesday. Here's what's at stake, and how Apple plans on defending itself.

The trade secret case in California



The legal battle between Apple and Masimo began in January 2020, when Masimo, a manufacturer primarily focused on hospital equipment, accused Apple of misappropriating trade secrets related to Apple Watch technology. Masimo claimed Apple used these alleged trade secrets in its wearable technology.

However, the case faced significant hurdles during the 2023 trial in California. Critical claims made by Masimo were dismissed outright, with the jury leaning heavily in Apple's favor on remaining issues, casting doubt on the uniqueness of the supposed trade secrets.

As the trial proceeded, the court found Masimo's alleged "valuable technical trade secrets" to be relatively minor elements -- such as the use of conventional materials and techniques in quality control processes -- that lacked originality or proprietary value. The jury voted 6 to 1 in favor of Apple on these claims.

Furthermore, the judge ruled against Masimo's claims regarding Apple's hiring practices, noting that employees can move between companies. Masimo also asserted that Apple infringed on 17 patents, but the U.S. Patent and Trademark Office (USPTO) ultimately invalidated claims on 15 patents.

The Federal Circuit later affirmed this decision. With its case continuing to weaken, Masimo voluntarily abandoned claims for punitive damages, lost profits, and a demand for $1.85 billion in unjust enrichment, leaving it with minimal grounds for financial restitution.

Masimo no longer seeks monetary compensation for trade secrets previously valued at billions.

International Trade Commission case



Frustrated with California litigation, Masimo filed a complaint with the ITC in 2021, requesting a ban on Apple Watch sales in the U.S. due to patent infringement. However, evidence showed Masimo had copied Apple's design, reversing its claims.

The judge dismissed Masimo's copying allegations because they lacked credible evidence. The ITC found Apple infringed on only five claims across two patents, excluding Apple Watches with a blood oxygen sensor.

Apple redesigned and got Customs approval to continue sales by January 2024. The exclusion order lasted only a day, causing minimal business impact. The company appealed the ITC's decision to the Federal Circuit, seeking to overturn the exclusion order and restore its blood oxygen feature.

Patent infringement case in Delaware



Parallel to the ITC case, Apple filed a lawsuit in Delaware, accusing Masimo of patent infringement. In response, Masimo countersued, challenging Apple's patent validity and attempting to excuse its alleged infringement.

The litigation in Delaware became more complex when Masimo launched its W1 consumer watch in January 2022. Later, it was shown to replicate the core design elements of the Apple Watch, including a patented design and wireless charging features.

In October 2024, a jury sided with Apple, determining that Masimo's W1 watch infringed on Apple's patents. Evidence suggests Masimo rushed to develop the W1 to establish grounds for the ITC's "domestic industry" requirement, relying on Apple's design elements.

Despite Masimo's attempts to invalidate Apple's patents, the USPTO upheld most of Apple's claims. Apple continues to pursue full legal recourse to protect its intellectual property.



Read on AppleInsider

Comments

  • Reply 1 of 10
    This is great. Apple -- Please tell us when the BloodO2 sensor will be turned back on in a Series 10, so I can reconsider picking one up. 

    Right now I'm sticking with my Series 9 that still has the BloodO2 sensor app installed from release day.

    Masimo's flex here has been hurtful to the market as a whole, and hurt their brand image. Instead of just selling another device that some people may choose, they went to attach Apple, and instead removed it from EVERYONE that already were planning on having the feature. This entire thing was crazy that the ITC would allow a company to "remove a feature" from another company that was advertised and made available. 

    I still side with Apple on this one, glad that others did too.
    jahbladeiOS_Guy80williamlondonwatto_cobra
  • Reply 2 of 10
    maltzmaltz Posts: 502member
    This entire thing was crazy that the ITC would allow a company to "remove a feature" from another company that was advertised and made available.
    Technically speaking, that didn't happen.  Apple stopped advertising the feature before it started manufacturing the new models with the feature disabled - notably in software, so it can be re-enabled in the future.  And the models that were sold with the feature enabled continue to work just fine.  There was also widespread press coverage.  I doubt there were very many people who unknowingly had that rug pulled out from under them.

    Still, I agree that this was a big overreach by Masimo, which has hurt them way more than it hurt Apple.  As an owner of a post-ban Ultra 2, I'm also eagerly awaiting the restoration of the O2 sensor.  (Though really just as yet-another-vital for it to measure, I don't really have any known issues around it.)
    ronnwilliamlondonwatto_cobra
  • Reply 3 of 10
    eriamjheriamjh Posts: 1,763member
    Massimo FAAFO with Apple.
  • Reply 4 of 10
    entropysentropys Posts: 4,307member
    What were Massimo thinking basically building a design around the Apple Watch? Way to kill your own campaign.  If it had been another design entirely they might have had more success. Worse, that watch decision is impacting on Massimo’s broader reputation.
    ronnwatto_cobra
  • Reply 5 of 10
    jdwjdw Posts: 1,455member
    Always thrilled to see news like this.  The bad guys are getting served what they deserve.
    watto_cobra
  • Reply 6 of 10
    thttht Posts: 5,695member
    entropys said:
    What were Massimo thinking basically building a design around the Apple Watch? Way to kill your own campaign.  If it had been another design entirely they might have had more success. Worse, that watch decision is impacting on Massimo’s broader reputation.
    Masimo needed to have a smart watch on the market in order to bring their case to the USITC. The C in USITC does not mean court. It means commission, whose charter is to protect US companies from unfair foreign competition (dumping) or malpractice (copying). There wouldn't be a USITC import ban if Masimo didn't have a smart watch business. (This is why Apple lost the recent lawsuit against Masimo. Apple didn't want money. They wanted Masimo's current watches banned and if so the USITC import ban gets undermined.)

    Masimo brought their patent and IP theft/poaching case against Apple in 2020. Their W1 watch was released in 2022. You can be the judge on why they shipped a smart watch. You can also think about what the ITC is doing too, because what are they doing accepting this case? The stupidity of this type decision is worse for the American economy which is what they are protecting.

    Furthermore, Masimo got a patent for an oxygen sensor with 4 LEDs on a convex protrusion with a chamfer on 2021, which was filed after the Apple Watch with pulse oximetry was announced. That convex protrusion with a chamfer has been on the Apple Watch since 2014. So, the USPTO gave Masimo a freebie there, and those patents were put to immediate use on their suit with Apple. Yeah, you can decide what Masimo's intentions were there too, when their "patents" were filed years after the Apple Watch shipped.

    Their ex-CEO is shady. Really shady. Just read up on Politan Capital's reasons for getting 2 of their chosen candidates on the board, which resulted in Kiana resigning. He didn't want to work for a board that was independent. The dude had a shady side company that he had Masimo funnel money too, with free licensing and probably employee movement between the teo. He was thinking of leaving Masimo and was going to get Masimo to provide free licensing, his choice of employees, and like 500m in capital for his post-Masimo company. 

    As far as I'm concerned, Apple should continue suing Masimo in perpetuity, until they stop suing. They have developed some good measurement tech, but it doesn't mean they should be rewarded for their shady business dealings. Heck, buy some medical measurement IP and sue some more if they have too.
    ronnAlex1Ndanoxwatto_cobra
  • Reply 7 of 10
    chasmchasm Posts: 3,601member
    This is great. Apple -- Please tell us when the BloodO2 sensor will be turned back on in a Series 10, so I can reconsider picking one up. 

    Right now I'm sticking with my Series 9 that still has the BloodO2 sensor app installed from release day.
    If you happen to be taking a trip to another country — literally any other country where Apple sells the Apple Watch — pick one up there. The Blood O2 sensor will work just fine, even after you return. The ban is strictly limited to the US.

    PS. International travel is GREAT, and I strongly encourage Americans to do more of it if the opportunity arises.
    entropysAlex1Nwatto_cobra
  • Reply 8 of 10
    entropysentropys Posts: 4,307member
    What. Like Wyoming?
    williamlondonAlex1Nwatto_cobra
  • Reply 9 of 10
    chasm said:
    This is great. Apple -- Please tell us when the BloodO2 sensor will be turned back on in a Series 10, so I can reconsider picking one up. 

    Right now I'm sticking with my Series 9 that still has the BloodO2 sensor app installed from release day.
    If you happen to be taking a trip to another country — literally any other country where Apple sells the Apple Watch — pick one up there. The Blood O2 sensor will work just fine, even after you return. The ban is strictly limited to the US.

    PS. International travel is GREAT, and I strongly encourage Americans to do more of it if the opportunity arises.
    However, be sure to buy that Watch from a country that is part of the same region as the US. Apple operates several regions globally for their Watches. European, Asian and Chinese Watches are not the same as North American ones. 
    ronnAlex1Nwatto_cobra
  • Reply 10 of 10
    In sum Masimo filed a nearly frivolous lawsuit ending with the company infringing on Apple's patents.
    I am surprised that they did not try to brig the suit to the Federal District Court in East Texas - in Marshall, Texas. The patent trolls prefer this court with sympathetic juors.


    watto_cobra
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