Masimo Has Spent $100M So Far in Apple Watch Patent Battle

Even though Massimo’s legal battle with Apple has already cost the company approximately $100 million, the company’s CEO says he won’t give up the fight until Apple makes changes to the way it deals with smaller companies.

Masimo has been involved in a long-running series of lawsuits over the Apple Watch’s blood oxygen measuring feature since at least 2020, accusing Apple of stealing trade secrets and poaching staff in 2013 and claiming patent infringement on Apple’s part in the blood oxygen sensor introduced in the Apple Watch Series 6.

Although Masimo’s patent infringement lawsuit led to a short-lived import and sales ban of the Apple Watch Series 9 and Apple Watch Ultra 2 by the US International Trade Commission (ITC), Masimo intends to keep fighting Apple, if for no other reason than to prove a point.

In a Wall Street Journal interview published on December 30, 2023, Masimo CEO Joe Kiani said that the legal battle has so far seen Masimo spend “around $100 million” fighting Apple over its technology.

Kiani says he intends to continue the fight, and that he won’t give up until Apple agrees to pay for the technology and changes the Cupertino company’s interactions with smaller firms.

Kiani said employees and friends warned him not to go into battle with such a large company. “People were telling me I’m crazy and I can’t go against Apple,” Kiani said, with Apple described as having “unlimited resources”.

Kiani says that Apple has a history of violating patents held by smaller companies, and he thinks he can make a difference in the smaller companies’ favor.

No one is standing up to them. If I can do it, it might change Apple for the better.Masimo CEO Joe Kiani

“Justice isn’t just blind but very slow,” Kiani insisted. “It’s painful. It’s an ugly thing to go through. It’s like war.”

Some observers say Kiani’s aggressive legal battles are using the US patent system to stymie the innovation of other companies. In 2006, he won a seven-year patent dispute with Nellcor, a company that made a rival pulse oximeter device. Masimo won damages and royalties that totaled nearly $800 million.

Kiani also won another patent-infringement case against Royal Philips in 2016, which resulted in Royal Philips paying out $300 million and agreeing to use Masimo’s technology in its product, which earned Masimo more than $1 billion.

Even though Masimo has spent approximately $100 million so far in its legal battle with Apple, it won’t be starting a GoFundMe any time soon. The company earned a $144 million profit in 2022.

Apple hasn’t yet made any overtures for settlement discussions with Masimo. However, Kiani is determined to continue, even if he eventually loses the company.

I feel like I have to do this. 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.Masimo CEO Joe Kiani

On Monday, iDrop News reported that Apple preparing to sell Apple Watch Series 9 and Apple Watch Ultra 2 devices that have the blood oxygen measurement functionality disabled. While Apple hasn’t officially announced this move, Masimo let the information slip out in a series of court filings and statements to the press. The modified Apple Watches are being held at Apple Stores as a contingency plan in case Apple loses its request for a stay on the ban pending an appeal of the ITC decision.

Masimo says it sees Apple’s move as a tacit admission that the Apple Watch blood oxygen technology does infringe on Masimo’s patents.