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Billion-dollar patent dispute over Apple Watch continues

by Milan
April 3, 2023
in News
Apple Watch Series 7 in teardown patent dispute

Image: Apple

A federal grand jury will soon hear Masimo's claim that Apple infringed technology patents related to blood oxygen measurement with its Apple Watch. The trial will last 10 days. The trial, which follows an earlier victory by Masimo before the International Trade Commission, begins Tuesday in California.

According to Bloomberg, up to one billion US dollars at stake, based on sales of certain versions of the Apple Watch and the prices of the sensor modules. Both sides have reportedly agreed to delay presenting evidence of appropriate royalties. Tim Cook could be called as a witness in the case in the U.S. District Court for the Central District of California. According to Masimo's court documents, the trial will focus on the Apple Watch SE and Apple Watch Series 4 through 7.

Apple: “Masimo has failed to successfully market its own smartwatch”

Apple claims in its response that "no piece" of Masimo's technology "was ever used in the design, development or marketing of the Apple Watch." Masimo and its subsidiary Cercacor "wrongly attempted to use this litigation as a maneuver to pave the way for their smartwatch." Masimo's "failure to successfully market a smartwatch," Apple says in its complaint, "is entirely their fault." The case also addresses the question of whether Apple obtained and used confidential information from Masimo through Michael O'Reilly and Marcelo Lamego. O'Reilly was Chief Medical Officer at Masimo for five years before being hired by Apple in 2013.

Masimo: The sale of the Apple Watch should be banned

Lamego was head of research at Masimo and head of engineering at Cercacor before joining Apple in 2014. Apple's pre-trial statement says the Apple Watch was "well under development, including its health sensors" when the two men were hired. Lamego left the company after "just six months." The company's lawsuit goes on to say that neither man "did anything wrong at Apple" and that Masimo is trying to "tarnish their reputation." This action is separate from AliveCor's similar lawsuit, in which the ITC argues that sales of the Apple Watch should be banned for patent infringement. It is also separate from the "retaliatory lawsuit" Apple filed against Masimo in October 2022. (Image: Apple)

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