Masimo Corp.’s $643 million victory over Apple Inc. is standing firm.

A federal judge last week issued a final judgment rejecting Apple’s latest attempt to overturn a jury verdict finding the tech giant infringed on its pulse oximetry technology.

The decision reinforces a landmark legal victory for the Irvine-based medical device maker, which was acquired by Danaher Corp. for $9.9 billion in June.

The yearslong battle began in 2020 when Masimo filed a lawsuit accusing Apple of stealing trade secrets and poaching former employees to develop blood oxygen monitoring features for the then 5-year-old Apple Watch.

Last November, Masimo won the jury verdict and called the outcome a “significant win.”

The victory comes as the two companies trade wins and losses in the broader patent fight.

While the federal court affirmed the jury verdict in Masimo’s favor, a U.S. International Trade Commission (ITC) judge in April denied the company’s request to reinstate an import ban on the Apple Watch after finding its redesign does not infringe Masimo’s patents.

The Patient Monitor Debate
Apple based its motion for a new judgment on the premise that the judge used the wrong interpretation of “patient monitor” and failed to clarify that definition to the jury.

During the civil trial, Apple’s main argument was that since the Apple Watch is not a patient monitor, it could not infringe Masimo’s patent.

In his latest decision, Judge James Selna rejected Apple’s claim, citing internal documents describing the device’s heart rate notification as a “medical feature” and the company’s FDA clearance for features using the heart rate sensor.

“Substantial evidence supports a finding that the Apple Watch is a ‘patient monitor,’ within the plain and ordinary meaning of that term,” Selna wrote.

The judge also rejected all nine of Apple’s arguments for a new trial, including its claim that two Apple witnesses were wrongfully excluded from testifying.

Masimo initially sought $3.1 billion and after more than half of its trade secrets were dismissed, reduced the request to $1.85 billion. A four-week trial took place in 2023 and resulted in a mistrial with a hung jury. In a retrial, Masimo dropped all requests for monetary damages and sought an injunction against the Apple.

The dispute between Masimo and Apple stretches back to 2013 when Apple explored using Masimo’s pulse oximetry technology in the Apple Watch and executives discussed acquiring the company.

Talks fell apart within months, and instead, Apple hired roughly 25 Masimo employees, including its chief medical officer and an executive slated to become its chief technology officer. The company denied it was poaching, with executives describing the tactic as “smart recruiting” in emails.

Judge Allows Kiani’s Claims to Move Forward
As Masimo celebrates another courtroom victory over Apple, the company is also defending itself against a lawsuit from founder and former chief executive, Joe Kiani, over compensation he says he is owed.

Last month, the Orange County Superior Court ruled that the case can continue.
The judge allowed Kiani’s two claims to proceed, including his arguments that the employment contract is ambiguous about the timing of payments and that the unpaid compensation qualifies as wages.

“We are holding those six directors accountable, and we are pleased that the Court has rejected their pleading-stage attempt to avoid liability for their wrongdoing,” Kiani’s attorney, Marshall Camp of Hueston Hennigan, told the Business Journal in a statement. “We look forward to discovery and to vindicating Mr. Kiani’s rights at trial.”

Kiani is seeking $100 million in damages from the company’s former six board directors affiliated with activist investor Politan Capital Management, following a proxy battle that resulted in his ouster as chairman, alleging they failed to pay him an approximately $450 million severance payout.

After resigning as CEO in September 2024, Kiani filed a lawsuit against Masimo to secure the pay package, which includes a base salary of $1 million per year. He’s also asking for options to purchase 300,000 shares of Masimo common stock at $38.76 per share.

Shareholders received $180 per share in cash when Danaher Corp. acquired Masimo in a $9.9 billion all-cash deal that closed in June.

Kiani owned 5.9 million shares, or 10.3% of the company, according to a February SEC filing. That amount is being disputed by Masimo, which says Kiani owns 4.57%, or 2.4 million shares, according to its proxy earlier this year.

For more on Kiani, ranked No. 40 on the Business Journal’s annual OC’s Wealthiest list with $1.6 billion net worth, see page 1.