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Apple Ordered to Pay Additional $184 Million in Interest to Masimo Over Patent Infringement

Federal judge adds interest to $634 million verdict for low-power pulse oximeter patent

By LineZotpaper
Published
Read Time2 min
A federal judge has ordered Apple to pay an additional $184 million in interest on a $634 million patent infringement verdict won by health technology company Masimo, bringing the total owed to more than $818 million. The ruling relates to Apple's use of Masimo's patented low-power pulse oximeter technology in certain Apple Watch models.

The additional payment was ordered by Judge James V. Selna, who rejected Apple's argument that awarding interest would constitute a windfall for Masimo. Citing US Supreme Court guidance, the judge wrote that "interest from the time that the royalty payments would have been received merely serves to make the patent owner whole."

The original $634 million verdict was handed down almost a year ago, after a jury found Apple had infringed a Masimo patent covering power-efficient blood oxygen measurement. The dispute is one of two legal fronts between the companies. In a separate action, the International Trade Commission ruled in 2023 that Apple had to remove the blood oxygen feature from two Apple Watch models to allow their sale in the United States. Apple was later forced to redesign the feature to bring the devices back into compliance.

Masimo had asked for interest calculated at 7 percent, but the judge rejected that rate and instead applied a rate equivalent to Masimo's own borrowing costs. Despite this, annual compounding still produced an additional $184 million. The combined award now stands at $818 million.

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Analysis

Why This Matters

  • The additional interest significantly increases Apple's financial exposure in a case already involving hundreds of millions in damages.
  • The ruling reinforces the principle that patent infringers must pay not only lost royalties but also the time value of that money, potentially encouraging earlier settlements.
  • Apple's ability to include blood oxygen measurement in future Apple Watch models remains constrained by both the ITC ruling and this ongoing litigation.

Background

Apple and Masimo have been locked in legal battles since 2020 over pulse oximetry technology used in the Apple Watch. Masimo, a medical device company, alleged Apple hired away key employees and used trade secrets and patented technology. In 2023, the ITC ordered Apple to stop selling Series 9 and Ultra 2 models with blood oxygen monitoring in the US, prompting Apple to disable the feature in new units and later redesign it. The damages verdict in late 2025 covered the patent infringement claim, and this new order adds interest for the period the royalties should have been paid.

Key Perspectives

Apple: The company argued that awarding interest would give Masimo a windfall, and sought to avoid paying the additional sum. Masimo: The health-tech firm sought interest at 7 percent to fully compensate for the delay in receiving licensing fees. Judge James V. Selna: He applied a rate based on Masimo's own borrowing costs, rejecting Apple's windfall argument and following Supreme Court precedent on making patent owners whole.

What to Watch

  • Whether Apple appeals the interest ruling or the underlying verdict, potentially dragging the case on further.
  • The status of Apple's redesigned blood oxygen feature and whether Masimo challenges it as still infringing.
  • Any move by the US International Trade Commission to revisit or modify its import ban on infringing Apple Watch models.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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