Former Masimo CEO Joe Kiani was the driving force behind banning Apple Watch sales of any model featuring an oximeter in the U.S. due to a patent infringement. However, things have taken a drastic turn following a proxy battle with an activist hedge fund that forced the removal of Kiani as Chief Executive, with Michelle Brennan named interim CEO. A report now states that this is an opportune moment for Apple and Masimo lawyers to arrange a meeting and discuss terms on how blood-oxygen sensing could return to compatible smartwatches.
One way for Apple and Masimo to bury the hatchet would be to integrate the company’s popular hospital equipment with the Health app
The Cupertino firm and Masimo could have reached a settlement agreement before as Kiani was open to that idea, but it appears that talks never matured. With Masimo’s founder no longer at the primary seat, Bloomberg’s Mark Gurman states in the latest edition of his ‘Power On’ newsletter that these turn of events present a golden opportunity for both entities. With blood-oxygen sensing being a vital feature for Apple Watch users, the technology giant should consider a viable approach.
Gurman believes that Apple should have materialized a deal months ago to get the feature back, but he also mentions that a billion-dollar deal with Masimo meant that the latter would be holding all the strings, and could alter its agreements in the near future, squeezing the iPhone maker for more funds. Apple is most likely not interested in reaching a licensing deal, but any partnership will be a positive development because it will allow both sides to drop litigation.
“I do believe Apple should have come to an agreement months ago to get the feature back on people’s wrists. I understand that a billion-dollar agreement with Kiani might have set a bad precedent. But if Apple truly put the customer first, it’s something the company should have figured out a way to resolve. Now, with Kiani out of the picture, the situation changes. I don’t believe Apple will want to reach a licensing agreement, but I could imagine a deal — financial or not — that lets the two sides drop all litigation.”
One way how Apple and Masimo could join forces is to integrate the health technology firm’s popular hospital equipment with the Health app. While it is simply a suggestion from Gurman, we are confident that Apple would have already brainstormed how to proceed after Kiani’s departure. It is possible that we hear about talks developing in the near future, so stay tuned for more updates.
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