Masimo was recently reported to have spent an estimated $100 million in its patent infringement fight against the most valuable company in the world. The health technology firm recently won an Apple Watch sales ban in the U.S., so any model that features a blood oxygen monitor cannot be sold in the country.
However, even if Apple was proven to have stolen patented technology developed by another firm, with its vast resources and an army of lawyers, it could drown the competition in legal fees and other expenses that would ultimately force them to throw in the towel.
Not with Masimo, because in addition to having millions in the bank, it has won two patent infringement cases in the past, which would likely have given its CEO, Joe Kiani, enough motivation to pursue the legal fight against a trillion-dollar tech behemoth.
In one patent infringement case, Masimo managed to secure a licensing deal that made the company more than $1 billion
The total profit earned by Masimo in 2022 was around $144 million, according to The Wall Street Journal, so it is safe to say that the company had some cash reserves to pursue a legal skirmish with Apple. However, Kiani’s friends and employees warned him of the impending risks of proceeding with this lawsuit, with some of them even calling him crazy for his efforts. Naturally, the lack of support from his peers and tightly-knit individuals would cause Kiani’s morale to drop, but it is Masimo’s past victories that may have given the CEO sufficient confidence.
Back in 2006, Masimo won a seven-year patent battle with Nellcor, followed by another patent violation victory over Royal Philips in 2016. With Nellcor, Masimo reportedly pocketed $800 million in damages and royalties, and with Royal Philips, it received an estimated $300 million, along with a licensing deal that brought in more than $1 billion. Kiani previously stated that he is open to settlement talks with Apple, hinting that it intends to squeeze the latter for millions too and possibly secure a licensing deal that will ultimately resume Apple Watch sales.
The U.S. Court of Appeals for the Federal Circuit has lifted the ban until January 10, but with every passing day, Masimo gains more and more leverage against Apple, so at this time, the ball is definitely in its court. Like Qualcomm, Apple could forego its ego on another occasion and obtain a business ally.
News Source: The Wall Street Journal
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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