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2 May 2023Liz Hockley

Jury undecided whether Apple stole medtech trade secrets

Latest instalment in dispute over Apple Watch health functionality ends in mistrial | Verdict inconclusive as one out of seven jurors disagrees | Masimo had asked for more than $1.8 billion in damages.

A jury in a California federal court has failed to reach a verdict in  Masimo’s trade secrets lawsuit against Apple, dampening the medical device company’s hopes of a billion-dollar damages award over the sale of Apple Watches.

US District Judge James Selna declared a mistrial today (May 2) after the jury in Santa Ana could not unanimously decide on whether Apple had misused confidential information belonging to  Masimo in its watches.

The technology in question used in Apple Watches related to measuring biomarkers such as heart rates and blood oxygen levels through the use of light.

Six out of seven jurors had voted to clear Apple of wrongdoing, it was revealed, with the panel telling Judge Selna that “we’re not going to be able to come to a joint conclusion”.

Masimo and its spinoff  Cercacor Laboratories sued Apple in 2020, claiming that the tech giant stole trade secrets following the hire of two Masimo and Cercacor executives. According to the lawsuit, Masimo representatives met with Apple in 2013 to discuss the use of their technology in Apple products,  Reuters reported.

The California-based medical technology company originally asked for $3.1 billion in damages over the sale of Apple Watches, which were allegedly developed using the stolen information. This was reduced to $1.8 billion after some of Masimo’s trade secrets claims were dismissed during trial.

In a statement, a Masimo spokesperson said that the firm was “disappointed that the jury was unable to reach a verdict” and intended to retry the case.

Apple said in a statement that: “We deeply respect intellectual property and innovation and do not take or use confidential information from other companies.

“We are pleased that the court correctly rejected half of the plaintiffs’ trade secret allegations, and will now ask the court to dismiss the remaining claims.”

During proceedings, one juror asked to be dismissed because of “financial problems” and the need to get back to work.

A face-off over watches

In a separate court dispute between the two firms, the US International Trade Commission (USITC)  found in January this year that Apple had infringed a Masimo patent through its pulse oximeter sensor, first released with the Apple Watch Series 6 in 2020.

Having decided that Apple had violated Section 337 of the Tariff Act, the ITC will also consider whether to implement an import ban of all infringing products in the US.

Masimo, which has long manufactured hospital equipment including pulse oximeters, launched its own smartwatch, the W1, in 2022.

Apple claims that Masimo copied its patented designs in the product, saying in a press statement that: “Masimo is attempting to take advantage of these many innovations by introducing a device that copies Apple Watch and infringes on our intellectual property, while also trying to eliminate competition from the market.”


More on this story

Big Pharma
5 July 2023   With competition, employee mobility and chatbots all on the rise, protecting IP as trade secrets has never been more important for life sciences firms, says Anthony Fitzpatrick of Duane Morris.
Americas
17 January 2023   With wearable health monitoring technology booming, Apple is facing several challenges to its smartwatch patents from medtech firms, and ITC investigations threatening import bans in the US. Sarah Speight reports.
article
31 January 2023   Tech giant faces second setback in a month in dispute with Masimo | Patent Trial and Appeals Board denies its request for IPR.

More on this story

Big Pharma
5 July 2023   With competition, employee mobility and chatbots all on the rise, protecting IP as trade secrets has never been more important for life sciences firms, says Anthony Fitzpatrick of Duane Morris.
Americas
17 January 2023   With wearable health monitoring technology booming, Apple is facing several challenges to its smartwatch patents from medtech firms, and ITC investigations threatening import bans in the US. Sarah Speight reports.
article
31 January 2023   Tech giant faces second setback in a month in dispute with Masimo | Patent Trial and Appeals Board denies its request for IPR.