Masimo Wins $634 Million Patent Verdict Against Apple Over Heart Rate Monitoring Technology
Key Insights
A California federal jury awarded Masimo $634 million after finding Apple (search) Watch's heart-rate alert functions infringed on Masimo's patent for heart and oxygen monitoring (search) technology.
The patent covers a power-saving system using light to track pulse and oxygen levels and expired in June 2022, with the case focusing on Apple (search) Watch alerts that notify users of abnormal heart rates.
Apple (search) plans to appeal the verdict, arguing the feature is a fitness aid rather than medical monitoring, while Masimo views this as validation of their medical device innovations.
A California federal jury has awarded Masimo Corporation $634 million after determining that Apple (search) Watch's heart-rate alert functions infringed on the medical device company's patent for heart and oxygen monitoring (search) technology. The verdict, announced by Masimo on November 14, marks a significant victory in the ongoing intellectual property dispute between the two companies.
Patent Infringement Details
The jury found that Apple (search) Watch's functions that notify wearers of unusually high or low heart rates infringed Masimo's US patent No. 10,433,776. The patent covers a power-saving system that uses light to track pulse and oxygen levels and expired in June 2022. During the trial, Apple withdrew its arguments for invalidating the patent, leaving jurors to focus solely on whether the device's heart-rate alerts constituted infringement.
Jurors agreed with Masimo's argument that the Apple (search) Watch's alert feature serves as a patient monitor—a device designed to detect and report abnormal readings even when the wearer isn't moving. According to Masimo, Apple used its low-power light-sensing method and motion-filtering design for this purpose.
Competing Arguments on Device Classification
The trial centered on a fundamental question about where wellness technology ends and medical monitoring begins. Apple (search) argued that the accused feature functions as a fitness aid rather than a medical tool. Apple's legal team emphasized that alerts activate only after 10 minutes of inactivity and are disabled in workout mode, demonstrating that the watch was never intended to capture every medical event.
Masimo had initially sought as much as $981 million for alleged infringement covering the period from January 2020 through the patent's June 2022 expiration.
Company Responses and Appeal Plans
"This is a significant win in our ongoing efforts to protect our innovations and intellectual property, which is crucial to our ability to develop technology that benefits patients," Masimo stated following the verdict.
Apple (search) expressed disagreement with the decision and announced plans to appeal. An Apple spokesperson characterized the verdict as "contrary to the facts" and noted that "Masimo is a medical device company that does not sell any products to consumers." Apple further stated that over the past six years, Masimo has sued the company in multiple courts asserting over 25 patents, with the majority found to be invalid.
Broader Legal Context
This verdict represents just one component of an extensive legal battle between the companies over wearable sensor innovation. Masimo is currently awaiting a trade-secret bench ruling from Judge James Selna, challenging a US Customs and Border Protection decision allowing imports of redesigned Apple (search) Watches, and defending an import ban it won at the US International Trade Commission that's under review at the US Court of Appeals for the Federal Circuit.
The legal conflict has already resulted in practical changes to Apple (search)'s products. After the U.S. International Trade Commission issued a limited exclusion order in 2023 finding that Apple had violated some of Masimo's patents, Apple introduced a redesigned blood oxygen feature in August for some Apple Watch Series 9, Series 10 and Apple Watch Ultra 2 users.
Financial Impact and Timeline
Needham analyst Mike Matson estimates it could take up to two years for Apple (search)'s appeal in the patent litigation case to be resolved, potentially delaying Masimo's collection of damages. When and if Masimo ultimately collects the damages, analysts expect the company to use the cash for share repurchases and debt repayment.