Masimo has spent $100M in Apple Watch patent infringement fight
Masimo's legal battle with Apple has so far cost the company about $100 million, but its CEO says it won't stop until Apple changes how it deals with smaller companies.
Apple Watch Ultra
The ITC import and sales ban of the Apple Watch in the United States was a short but important win for Masimo, the company that claims Apple infringes on its blood oxygen sensing patents. Despite the major albeit brief ban of Apple Watch sales, Masimo still intends to keep going against Apple to prove a point.
Speaking to the Wall Street Journal in an interview published on Saturday, CEO Joe Kiani declared that the fight has so far seen Masimo spend "around $100 million" fighting Apple over its technology.
Just as expressed in an earlier interview, Kiani intends to continue the fight, and that he won't settle until Apple pays for the technology and agrees to change its interactions with smaller companies.
Before his legal action, employees and friends warned Kiani of the risks of doing so against such a major opponent. "People were telling me I'm crazy and I can't go against Apple," Kiani said, with Apple described as having "unlimited resources".
Even so, with Apple's previous history of dealing with patent violation allegations from smaller companies, Kiani thinks he can make a difference in their favor. "No-one is standing up to them. If I can do it, it might change Apple for the better," he said.
A lucrative track record
Kiani and Masimo's history of legal action certainly works in his favor, with repeated wins over others in the courtroom concerning patent infringement. "Justice isn't just blind but very slow," insists Kiani. "It's painful. It's an ugly thing to go through. It's like war."
The profile on the company and Kiani's legal fights includes claims that some people view his "aggressive use of the U.S. patent system" as being "exploitation that stymies the innovation of others."
The battles picked by Kiani are protracted but lucrative to Masimo. In one seven-year patent fight with Nellcor that ended in 2006, Masimo secured damages and royalties that eventually totaled close to $800 million.
Meanwhile another seven-year patent infringement spat against Royal Philips which settled in 2016 saw Philips pay $300 million and agree to use Masimo's technology in its product. That move earned Masimo in excess of $1 billion.
While Masimo has so far spent around $100 million on its legal case against Apple, it still has some spare cash available. In 2022, the company posted around $144 million in profit.
Though Apple hasn't sought discussions with Masimo for a settlement, Kiani is said to be determined enough to continue, even if he loses the company.
"I feel like I have to do this," Kiani insisted to the report. "If I can change the most powerful company in the world from continuing to act badly, that'll have more impact on the world than anything else I'm doing."
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Comments
Most of this articles seems to be about the money Masimo makes out of patent settlements. Is Masimo a serious company or is it a patent troll that keeps up a charade of selling medical products.
To research that I checked Amazon.
What's really odd is when I had Amazon display pulse oximeters priced from high to low, the Masimo did not even appear. The most expensive one displayed is from Zacurate at $44.99. I've been told by people at Amazon that its search results aren't literally accurate, that some items aren't displayed for reasons known only to Amazon. I suspect Amazon considers the Masimo so grossly overpriced, it doesn't bother to list it in some search results. In fact when I searched for Masimo pulse oximeter by name, it only came up fifth.
Also, there's nothing remarkable about Masimo's product even though it sells for about six times the market price. Accuracy certainly isn't a factor. It's displays two digits on a tiny display just like all the other products, that's a 1% accuracy, which is fine for that purpose. There's also deception in this claim.
Yeah, that "same technology" is not only used by "top hospitals," it's almost certainly used in these inexpensive home ones. That's where that 200 million figure comes from for a country with about 330 million people. It would not surprise me if it was being made in the same Chinese factories that make those $25 pulse oximeters. It looks much the same.
I've been known to criticize Apple's business tactics, but in this case I'm on Apple's side. They're battling a dishonest patent troll that sells overpriced sham products. I wish them every success.
Strategically, Kiani wants to enter the consumer health/fitness device markets going into the future, with such things as wrist watches, and with a purchase of a headphone company, audio devices.
There are obviously a lot of companies with smart watches with health related products and health related features in headphones will be coming, Not a coincidence that a litigious company like Masimo is suing Apple. There will be a period of patent litigation as tech gadgets get more and more health related features. Medical device companies with patent portfolios will be on the lookout to sue consumer device companies. It will take a while to shake out.
1. They succeed in having the last two Masimo patents invalidated for obviousness.
2. They can engineer around the patents through software or hardware. Apple obviously prefers the former as hardware changes leaves Apple unable to sell older watches. Apple would have to pay damages in this case but in no way will they pay the $3B dollars that Masimo wants.
3. The ITC import ban will also likely go away as Masimo does not have a significant domestic industry to be protected. That is part of Apple’s appeal there.
Overall, Masimo may get money for past infringement but they also may get nothing. A complete victory seems very unlikely.
It’s noteworthy that most of a jury has already sided with Apple rather than Masimo in this case.
In this case, Apple won’t settle, because they believe they’re in the right, and caving will only embolden other patent trolls to come after them, costing Apple and their customers more money, while making smaller companies far more vulnerable to the same sort of highway robbery.
One point 2, cheap sells more than expensive. Not rocket. science.
but the bottom line. in all of this, whether Masimo makes their big money on patent royalties or not, they have valid, hard-earned patents and deserve to get paid for licensing. Just because they MAY not make. a huge business out of. it does not justify others stealing their IP without licensing and gong forward. If Apple did indeed violate these patents - and it sure looks that way, they need to pay up, license the patent properly and let the owner enjoy the fruit of their labors. It doesn't matter if it's Google, Microsoft, Al Queada, Apple, or the pope doing this. Patents exist for a reason and they should be honored and defended.
Yep, apparently people are, even on this very forum. Stunning how some of you are so easily propagandized.