Apple has been immersed in a legal battle for more than four years against Masimo, a company specialized in medical technology. The company alleges that Apple stole trade secrets and hired its employees to develop the Apple Watch, especially regarding blood oxygen monitoring functions.To understand the origin of the conflict we must go back to 2020, when Masimo denounced Apple for alleged appropriation of trade secrets. The situation became complicated in April 2023, with a trial that culminated in a failed ambiguous of the jury.
The Apple Watch is at risk
At that time, the jury was unable to reach a unanimous verdict, since six of the seven members ruled in favor of Apple, while one of them refused to agree with the Cupertino company, so the result of the process was void. As part of a new offensive, Masimo decided to give up its initial financial claims, which amounted to 1.85 billion dollars, and opted for a trial in which it only seeks a court order that restrict Apple Watch functions in matters of health.
With this decision, Masimo is not seeking direct financial compensation in its favor, but is requesting that Apple be prohibited from using the trade secrets that were supposedly stolen from it. The court will decide whether there was any violation of trade secrets and, if so, will consider whether to impose an injunction against Apple. However, it is still unclear what form such an order would take and how it would affect the Apple Watch, especially considering that many of Masimo’s initial claims have been rejected.
The dispute over trade secrets is not the only one that pits both companies against each other. Masimo had accused Apple of infringe up to 17 patents. Following a review by the United States International Trade Commission, 15 of these patents were invalidated, leaving only two under dispute. This aspect of the trade secret lawsuit is currently on hold, pending a final resolution.
Will Apple have to retire the Apple Watch?
For its part, Apple took the initiative and filed a countersuit accusing Masimo of infringing some of its own patents related to the design of the Apple Watch. In a turn of events, a jury last week determined that Masimo’s device, the W1 Freedom, had copied certain features of the Apple Watch. Although Apple only requested $250 in compensation, the goal of this lawsuit was to get Masimo stopped production of a design that, in his opinion, emulated the distinctive lines of the Apple Watch.
The US International Trade Commission (ITC) banned Apple from selling the Apple Watch with a blood oxygen sensor, but Apple maintained sales by disabling this feature in North America. The company continues to appeal this decision, hoping that the court will reverse the ban. Although the restriction is Masimo’s only success in its dispute, its impact is limited as Apple seeks legal and technical alternatives to restore the feature in its future models.
The entry The trial continues with the future of the Apple Watch at stake: will they have to stop selling it? It was first published in La Manzana Mordida.
