Masimo's legal battle with Apple has so far cost the company about $100 million, but its CEO says it won't stop until Apple changes how it deals with smaller companies.
The ITC import and sales ban of the Apple Watch in the United States was a short but important win for Masimo, the company that claims Apple infringes on its blood oxygen sensing patents. Despite the major albeit brief ban of Apple Watch sales, Masimo still intends to keep going against Apple to prove a point.
Speaking to the Wall Street Journal in an interview published on Saturday, CEO Joe Kiani declared that the fight has so far seen Masimo spend "around $100 million" fighting Apple over its technology.
Just as expressed in an earlier interview, Kiani intends to continue the fight, and that he won't settle until Apple pays for the technology and agrees to change its interactions with smaller companies.
Before his legal action, employees and friends warned Kiani of the risks of doing so against such a major opponent. "People were telling me I'm crazy and I can't go against Apple," Kiani said, with Apple described as having "unlimited resources".
Even so, with Apple's previous history of dealing with patent violation allegations from smaller companies, Kiani thinks he can make a difference in their favor. "No-one is standing up to them. If I can do it, it might change Apple for the better," he said.
A lucrative track record
Kiani and Masimo's history of legal action certainly works in his favor, with repeated wins over others in the courtroom concerning patent infringement. "Justice isn't just blind but very slow," insists Kiani. "It's painful. It's an ugly thing to go through. It's like war."
The profile on the company and Kiani's legal fights includes claims that some people view his "aggressive use of the U.S. patent system" as being "exploitation that stymies the innovation of others."
The battles picked by Kiani are protracted but lucrative to Masimo. In one seven-year patent fight with Nellcor that ended in 2006, Masimo secured damages and royalties that eventually totaled close to $800 million.
Meanwhile another seven-year patent infringement spat against Royal Philips which settled in 2016 saw Philips pay $300 million and agree to use Masimo's technology in its product. That move earned Masimo in excess of $1 billion.
While Masimo has so far spent around $100 million on its legal case against Apple, it still has some spare cash available. In 2022, the company posted around $144 million in profit.
Though Apple hasn't sought discussions with Masimo for a settlement, Kiani is said to be determined enough to continue, even if he loses the company.
"I feel like I have to do this," Kiani insisted to the report. "If I can change the most powerful company in the world from continuing to act badly, that'll have more impact on the world than anything else I'm doing."
43 Comments
I wish them luck with their fight. From what I have read, they've a genuine case here and Apple knows it.
Most of this articles seems to be about the money Masimo makes out of patent settlements. Is Masimo a serious company or is it a patent troll that keeps up a charade of selling medical products. To research that I checked Amazon. Their Masimo MightySat Fingertip Pulse Oximeter currently sells for $269.99. It has a 4.5 star rating and has sold a mere 50+ in the past month. That's not much business for a company that's spending $100 million on lawyers. They have no business to save worth speaking of.A similar looking Innovo Deluxe Fingertip Pulse Oximeter has a slightly better 4.7 star rating, sells for $34.99 and has sold 5K+ in the past month. Indeed, Amazon has page after page filled with pulse oximeters selling for between $25 and $45. Masimo's is such a far outliner I could not find another even close to its price.What's really odd is when I had Amazon display pulse oximeters priced from high to low, the Masimo did not even appear. The most expensive one displayed is from Zacurate at $44.99. I've been told by people at Amazon that its search results aren't literally accurate, that some items aren't displayed for reasons known only to Amazon. I suspect Amazon considers the Masimo so grossly overpriced, it doesn't bother to list it in some search results. In fact when I searched for Masimo pulse oximeter by name, it only came up fifth. Also, there's nothing remarkable about Masimo's product even though it sells for about six times the market price. Accuracy certainly isn't a factor. It's displays two digits on a tiny display just like all the other products, that's a 1% accuracy, which is fine for that purpose. There's also deception in this claim. Clinically Proven Technology: Powered by Masimo SET, the same technology used by 9 of the top 10 US hospitals and is used to monitor more than 200 Million patients annually.Yeah, that "same technology" is not only used by "top hospitals," it's almost certainly used in these inexpensive home ones. That's where that 200 million figure comes from for a country with about 330 million people. It would not surprise me if it was being made in the same Chinese factories that make those $25 pulse oximeters. It looks much the same.I've been known to criticize Apple's business tactics, but in this case I'm on Apple's side. They're battling a dishonest patent troll that sells overpriced sham products. I wish them every success.
Masimo's remaining patents on O2 saturation sensing seem to be continuation patents with slight changes from the parent patents awarded over a decade ago. Most have been invalidated and makes me wonder how Masimo managed to get over a billion dollars in damages in the 2 cases past 10 years. No one questioned the prior art that existed for technology that is now 80 years old? The one patent that the ITC ruled was being infringed on by Apple was awarded in 2021... and imo is a rather trivial improvement. However I am not sure if a software change will get around it. The ITC has lawyers with engineering backgrounds, but they really are over their heads on this one. This needs to go to a proper court with patent experts. Finally if/when Masimo's remaining patents are invalidated, will they even have an O2 sensing business left - apart from the audio companies they have recently purchased?