Masimo Awarded $634 Million in Apple Watch Patent Dispute
Federal jury finds Apple infringed on Masimo's blood-oxygen sensor technology, marking a pivotal victory for the medical device maker in its long-running legal battle.
A federal jury in California has ordered Apple to pay Masimo Corp. $634 million in damages, a landmark decision that validates the medical technology company’s patent claims against the tech giant’s popular Apple Watch.
The verdict, delivered late Friday, found that Apple’s integration of blood-oxygen monitoring features infringed upon Masimo’s pioneering pulse oximetry technology. The substantial award represents a significant victory for Irvine-based Masimo, equivalent to approximately 7.75% of its $8.18 billion market capitalization and underscoring the value of its intellectual property portfolio.
Apple has stated its disagreement with the jury's decision and intends to appeal. "We are disappointed with the verdict and plan to appeal," an Apple spokesperson said in a statement. "We have a deep respect for intellectual property and innovation and do not believe the facts support this decision."
This ruling is the latest chapter in a multi-year, high-stakes legal war between the two companies. Masimo has long accused Apple of misappropriating its trade secrets and infringing on its patents after allegedly engaging in partnership discussions years ago, only to hire away key Masimo employees. The dispute previously led to a dramatic import ban on certain Apple Watch models.
In late 2023, the U.S. International Trade Commission (ITC) issued an exclusion order that briefly halted U.S. sales of the Apple Watch Series 9 and Ultra 2, devices featuring the contested blood-oxygen sensor. Apple was forced to release a software-modified version of the watches, with the blood-oxygen feature disabled, to resume sales in the United States, as reported by Bloomberg Law.
The legal battles have cast a spotlight on the increasingly blurred lines between consumer technology and regulated medical devices. As major tech companies like Apple push deeper into personal health and wellness monitoring, they are increasingly colliding with specialized medical technology firms that have spent decades developing and patenting their innovations.
For Masimo, a company renowned for its advanced patient monitoring systems used in hospitals worldwide, this legal victory provides both financial restitution and powerful validation. The company has argued that its foundational technology, which can accurately measure blood oxygen levels even when a patient is in motion, was unfairly co-opted by Apple for its mass-market consumer device.
Analysts will be closely watching the appeals process and any potential impact on Apple's future product development. While the $634 million award is financially manageable for a company of Apple's scale, the verdict could create a precedent for future intellectual property disputes in the lucrative wearables market. According to Reuters, the patent at the center of this specific case expired in 2022, but the damages cover past infringement.
Masimo's stock (NASDAQ: MASI) has seen volatility throughout its protracted legal fight with Apple. The company’s shares have traded between a 52-week low of $133.70 and a high of $194.88. This verdict is expected to be a focal point for investors, who will weigh the immediate financial gain against the ongoing costs and uncertainties of the broader litigation, which continues on other fronts.
The decision serves as a stark reminder of the intense competition and high value of intellectual property in the rapidly growing digital health sector. As smartwatches and other wearables evolve into more sophisticated health-monitoring tools, the legal and regulatory landscape will continue to be a critical battleground for innovators and tech titans alike.