Image by Luke Chesser on Unsplash
Apple Watches are some of the most in-demand tech accessories today. This small device boasts a powerhouse of features. It has fitness tracking, health-oriented capabilities, and communication features. It also integrates with other devices in the Apple ecosystem.
These watches have become immensely popular, with Apple selling almost 54 million units in 2022.
Despite this success, Apple has been involved in a patent dispute with health company Masimo over certain features or technologies integrated into the Apple watch. This post explores the details of the case and what it means for Apple and other companies’ patents.
The Current Situation
Since the end of December 2023, Apple has halted the sales of the Apple Watch Series 9 and Apple Watch Ultra 2 due to an International Trade Commission (ITC) ruling.
This ruling is connected to the ongoing patent dispute between Apple and the medical technology company Masimo over the watch’s capability to measure blood oxygen levels.
Apple has stopped selling these watches due to this ongoing legal battle but resumed their sales during the 2023 holiday season. They pulled out the watches again after the ITC ruling.
As of writing, Apple is not selling watches with the disputed sensor capabilities, as the ruling prohibits the import of these watches. However, they are still selling similar watches with the light sensing features disabled.
Part of the company’s approach includes redeveloping its software to sell watches that do not infringe on Masimo’s patent. Hopefully, these new versions can hit the market within the year without dispute.
The Issue
The dispute surrounds one feature that Apple Watch introduced in 2020, which is the use of pulse oximeters that detect blood oxygen levels. Apple began rolling out this feature with the Apple Watch Series 6.
Masimo, a medical technology company, sued Apple in 2020 for infringing on ten patents, including the features that measure heart rate and blood oxygen levels.
To give you some of the facts, in 2013, Apple hired engineer Marcelo Lamego to develop its newest Apple Watches with health sensors. However, Lamego has also been working with Masimo’s sister company, Cercacor Laboratories, since 2003.
This transfer of talent led Masimo to believe that Lamego took their patented technologies with him to use in the development of the Apple Watch.
Even though he resigned in 2013, months after he started at Apple, Masimo believes that he has brought patented knowledge that enabled Apple to produce the Apple Watch with its current features.
What Businesses Should Know
This patent dispute has been going on for years. While it only affects Apple and its subsidiaries, the case also offers lessons businesses should remember, especially in product development and manufacturing.
Impact on Apple sales
The current patent dispute has caused Apple to lose approximately $20 billion in sales. The newer Apple Watch models covered by the ban account for around 80 percent of Apple’s total watch imports.
While this is a significant amount of money at face value, it’s essential to consider that Apple is one of the tech world’s biggest giants. This $20-billion loss only accounts for one percent of their total sales. Plus, the company could still redirect consumers to purchase their older watch models.
Importance of patent law education
The dispute’s minimal impact on Apple’s sales will likely not apply to other businesses. Smaller companies with fewer resources must be more careful about patent disputes and other infringement issues.
Getting sued in a patent infringement case could be devastating for companies of a smaller scale. For this reason, business leaders must become better educated about patent law.
Consulting a patent attorney would be your best bet, especially if you plan to design and manufacture your own products.
Understand the Intricacies of Patent Law
The patent issue between Apple and Massimo emphasizes the importance of due diligence in business, especially in manufacturing.
While these disputes often get resolved through settlements or product adjustments, lawsuits are expensive. Understanding patent law, as well as keeping abreast of competitor technologies and industry trends, can help businesses better adjust and claim their place in the market.