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Apple and Masimo's patent and trade secret dispute escalates with lawsuits as Apple defends its innovations and Masimo's claims are rejected in court.
Apple and medical device maker Masimo are embroiled in a lawsuit that highlights the high stakes of intellectual property in tech. Initially over allegations that Masimo misappropriated trade secrets, the dispute has expanded to include patent infringement claims in multiple states and jurisdictions.
The trial begins Tuesday. Here's what's at stake and how Apple plans to defend itself.
The Trade Secret Case in California
The legal battle between Apple and Masimo began in January 2020, when Masimo, a manufacturer primarily focused on hospital equipment, accused Apple of misappropriating trade secrets related to Apple Watch technology. Masimo claimed that Apple used these alleged trade secrets in its wearable technology.
However, the case faced significant hurdles during a California trial in 2023. Masimo's critical claims were dismissed in their entirety, and jurors swung heavily in Apple's favor on the remaining issues, calling into question the uniqueness of the alleged trade secrets.
During the trial, the court found that Masimo’s alleged “valuable technical trade secrets” were relatively minor items — such as the use of common materials and methods in quality control processes — that lacked originality or patentable value. The jury voted 6 to 1 in favor of Apple on these claims.
Moreover, the judge ruled against Masimo’s claims regarding Apple’s hiring practices, noting that employees can move from one company to another. Masimo also claimed that Apple infringed 17 patents, but the U.S. Patent and Trademark Office (USPTO) ultimately invalidated the claims under 15 patents.
The Federal Circuit later affirmed that ruling. As its case continued to weaken, Masimo voluntarily dropped claims for punitive damages, lost profits, and a $1.85 billion claim for unjust enrichment, leaving it with little basis for financial restitution.
Masimo no longer seeks monetary compensation for trade secrets that were previously valued in the billions.
International Trade Commission Case
Frustrated by the California trial, Masimo filed a complaint with the ITC in 2021, seeking an injunction against selling the Apple Watch in the U.S. for patent infringement. However, evidence showed that Masimo had copied Apple’s design, invalidating its claims.
The judge dismissed Masimo’s copying allegations because they lacked compelling evidence. The ITC found that Apple had infringed only five claims across two patents, excluding the Apple Watch with a blood oxygen sensor.
Apple redesigned the product and received customs approval to continue selling it by January 2024. The injunction lasted only one day, having minimal impact on its business. The company appealed the ITC’s decision to the Federal Circuit, seeking to overturn the injunction and restore the blood oxygen feature.
Patent Infringement Case in Delaware
In parallel to the ITC case, Apple filed a lawsuit in Delaware, accusing Masimo of patent infringement. In response, Masimo filed a counterclaim, challenging the validity of Apple's patent and attempting to justify its alleged infringement.
The Delaware trial became more complicated when Masimo released its W1 consumer watch in January 2022. It was later shown to copy key design elements of the Apple Watch, including the patented design and wireless charging features.
In October 2024, a jury sided with Apple, ruling that Masimo's W1 watch infringed Apple's patents. The evidence suggests that Masimo rushed to develop the W1 to support the ITC's “internal industry” claim by relying on elements of Apple's design.
Despite Masimo's efforts to invalidate Apple's patents, the USPTO upheld most of Apple's claims. Apple continues to seek a full trial to protect its intellectual property.
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