Currently, Apple Watch models sold in the U.S. lack a blood oxygen monitoring feature due to an ongoing patent dispute between Apple (AAPL, Financial) and medical technology company Masimo. This legal battle revolves around health features, especially concerning blood-oxygen detection. Recently, Apple achieved a minor victory as an older model of Masimo's smartwatches was found to infringe on patents, resulting in a $250 compensation—equivalent to half the price of an Apple Watch Series 10 with cellular capabilities.
The conflict began when Apple hired Masimo's former Chief Medical Officer and Chief Technology Officer from its subsidiary, Cercacor, in 2013 and 2014 to work on the Apple Watch. Masimo filed a lawsuit in January 2020, accusing Apple of stealing confidential information and poaching key employees. Masimo sought a ban on the sales of Apple Watch Series 6, claiming it infringed on their blood-oxygen technology patents.
The battle intensified when the U.S. International Trade Commission (ITC) ruled in October 2023 that Apple had violated Masimo's pulse oximeter patents, ordering a ban on the sale and import of Apple Watch models with blood oxygen sensors. Apple managed to temporarily delay the ban but eventually disabled the feature on newer models like the Apple Watch Series 9 and Ultra 2 via software updates.
In the face of Masimo's allegations, Apple chose to confront the issue head-on rather than settle through licensing agreements. Tim Cook, Apple CEO, highlighted that the appeal of Apple Watch extends beyond just the blood-oxygen sensor, emphasizing consumer interest in other features.
In October 2022, Apple took the offensive, accusing Masimo's W1 smartwatches of patent infringement. Recently, a jury sided with Apple, finding Masimo's smartwatches and chargers violated certain patents, though the compensation awarded was minimal, indicating the key focus was more on halting sales rather than monetary gain.
The dispute has attracted the attention of other tech giants like Google and Qualcomm. In September, Masimo announced collaborations with them to integrate their biosensing technology into Wear OS smartwatches. This move introduces new variables into the ongoing battle between Apple and Masimo, with the potential to reshape the smart wearable market. As this technological face-off continues, the impact on consumer options remains an important consideration. Observers are keen to see how this innovation-driven conflict unfolds in the future.
