American justice rules in favor of Apple: Masimo violated its patents and will receive… $250! Yes, you read that correctly. Two hundred and fifty dollars. This is not a typo. The war between Apple and Masimo takes an unexpected turn than even the best Hollywood screenwriter would have imagined.
On one side we have Apple, the tech giant we all know. On the other, Masimo, a company that, although its name is not familiar to many, is a heavyweight in the world of medical monitoring. But let’s go in parts, because this story has some twists and turns.
The origin of the conflict: a signature that did not please at all
All It started in 2013.when Apple hired Michael O’Reilly, Masimo’s chief medical officer. The goal? Set the stage for the launch of the first Apple Watch. Since then, relations between the two companies have been, to say the least… tense. Masimo accused Apple of stealing trade secrets and violating its patents.
The dispute primarily focuses on blood oxygen measurement technology. Apple, for its part, has denied all accusations. Masimo, leader in this field in the medical field, alleged that Apple violated its patents by implementing this technology on the Apple Watch.
Apple argued that it independently developed its own technology. We have reached the point where, as a preventative measure, Apple has stopped offering the Apple Watch Series 9 the ability to deliver blood oxygen to users in the United States. And with the Apple Watch Series 10, it remains the same: US customers cannot find out this setting. The rest of the world, yes. The sensor is there, but limited by the software.
This conflict is still activebut the situation between Apple and Masimo is starting to deteriorate due to another ongoing lawsuit: in this case, Apple’s accusation of patent infringement on the design of Apple Watch chargers.
The courts agree with Apple. But the compensation is ridiculous
After years of legal battle, the American justice has handed down a sentence regarding the two Masimo smartwatch models (the W1 and the Freedom). The watches themselves as well as their chargers infringed two Apple design patents.
The compensation that Masimo must pay to Apple is… $250. That’s exactly what an Apple Watch SE costs.
Surprisingly, it was Apple itself that requested this minimum amount. According to the company’s legal team, the purpose of the lawsuit was not to get money, but to prevent Masimo will copy its design and features. By opting for this minimum compensation, Apple waives the possibility of blocking sales of Masimo watches. The complete opposite of what Masimo did with them.
The legal battle between Apple and Masimo is far from over
Apple still faces a ban on using the blood oxygen application on the Apple Watch Series 10 and Ultra 2 in the United States imposed by the International Trade Commission (ITC) in connection with other Masimo patents, those related to the blood oxygen meter.
To all this, we must add the dismissal of the founder and CEO of the company. Yes, at Masimo they did the same thing as in the old Apple: fire your owner. This happened after spending more than $100 million in the legal battle against Apple.
The change of CEO and this first legal decision in favor of Apple could tip the scales in favor of Cupertino, but for now The argument is far from over, and it is American customers who pay the heaviest: the blocking of one of the key functionalities of the Apple Watch.
Source | Bloomberg
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