Masimo’s Twin Wins Over Apple Boost Leverage in Watch-Tech War

Masimo Corp.’s double-win last week in its intellectual property dispute over Apple Inc.‘s smartwatches bolsters its leverage in potential settlement talks even as the $634 million infringement verdict and a reopened trade investigation fall short of a decisive blow.

California jurors found Nov. 14 that the Apple Watch’s heart-rate alert function infringed Masimo’s US patent No. 10,433,776, which covered a power-saving system for light-based pulse- and oxygen-monitoring and expired in June 2022.

Earlier that day, the US International Trade Commission launched a “combined modification and enforcement proceeding” after Masimo urged the agency to resolve tensions between two US Customs and Border Protection rulings over whether the redesigned Apple Watches can escape an earlier import ban over other patents. The ITC expects to decide within six months.

The developments add pressure on Apple in a six-year patent and trade-secrets fight over its flagship wearable device.Last month, Apple’s chief financial officer credited Apple Watch sales with helping drive more than $9 billion in quarterly revenue in the Wearables, Home and Accessories category.

But the verdict’s impact may be constrained by the procedural realities of the many disputes at play between the legal rivals.The medical-device company now has “a powerful negotiating chip” in any global settlement talks, said Jeff Saltman, an intellectual-property trial lawyer at Cole Schotz PC. “While the parties are unlikely to value the verdict at its full value, it is still a substantial sum even if a discount is applied.”

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