Apple hit with massive fine over Apple Watch dispute

Apple has suffered a major defeat in its long-term legal dispute with the medtech firm Masimo and has been ordered to pay $634 million in damages.

As the Daily Journal reports, a federal jury agreed that the latter company’s pulse-oximetry patent was infringed by a feature in some Apple Watches. Apple had argued that damages should be in the $3m to $6m range, whereas Masimo had asked for between $634M and $749M.

As part of the verdict, jurors decided that certain Apple Watch models can legally be classed as “patient monitors,” a question which was crucial to the patent-infringement claims. Apple had argued that its smartwatches don’t meet that definition because they don’t provide continuous monitoring, but Masimo argued that the Cupertino company embraced this definition in practice, if not in its marketing verbiage.

The dispute has been running for years. Back in 2020, Masimo complained of employee poaching and patent infringement in the Apple Watch Series 4 and 5, which was later expanded to include the Series 6, and eventually the 7, 8, 9, and Ultra models. Last year, the U.S. International Trade Commission blocked sales of the Series 9 and Ultra 2, and Apple was obliged to software-block their blood-oxygen sensors. The feature was eventually restored in August of this year, but in a modified and arguably less useful form.

Apple has issued a statement indicating that it intends to appeal the verdict.

“We disagree with today’s decision, which we believe is contrary to the facts,” the statement reads. “Masimo is a medical device company that does not sell any products to consumers. Over the past six years, they have sued Apple in multiple courts and asserted over 25 patents, the majority of which have been found to be invalid. The single patent in this case expired in 2022, and is specific to historic patient monitoring technology from decades ago.”