Jury Rules in Apple vs. Masimo Patent Dispute

By Blake Brittain

(Reuters) – Apple convinced a federal jury on Friday that early versions of health monitoring tech company Masimo (NASDAQ:MASI)'s smartwatches infringe two of its design patents as part of a broader intellectual property dispute between the companies.

The jury, in Delaware, agreed with Apple (NASDAQ:AAPL) that previous iterations of Masimo's W1 and Freedom watches and chargers willfully violated Apple's patent rights in smartwatch designs.

However, the jury awarded the tech giant, which is worth about $3.5 trillion, just $250 in damages – the statutory minimum for infringement in the United States.

Apple's attorneys asserted that the "ultimate purpose" of its lawsuit was not monetary but to win an injunction against the sale of Masimo's smartwatches following an infringement ruling.

On this aspect, the jury also determined that Masimo's current watches did not infringe Apple patents covering inventions that Apple had accused Masimo of copying.

Masimo stated that it appreciated the jury's verdict "in favor of Masimo and against Apple on nearly all issues," noting that the decision only pertained to a "discontinued module and charger."

"Apple primarily sought an injunction against Masimo's current products, and the jury's verdict is a victory for Masimo on that issue," Masimo commented.

In response, Apple expressed that they were "glad the jury's decision today will protect the innovations we advance on behalf of our customers."

Based in Irvine, California, Masimo accused Apple of recruiting its employees and stealing its pulse oximetry technology after discussions about a potential collaboration.

Last year, Masimo succeeded in convincing the U.S. International Trade Commission to block imports of Apple's Series 9 and Ultra 2 smartwatches, following the commission's finding that their blood oxygen reading technology infringed Masimo's patents.

Apple has appealed this decision and resumed selling the watches after removing the contested technology. The tech giant countersued Masimo for patent infringement in 2022, alleging Masimo copied features from the Apple Watch for its own smartwatches.

Apple further accused Masimo of using lawsuits at the ITC and in California to "make way for Masimo's own watch."