Apple-Masimo Smartwatch Biomarkers Trade Secret Case Ends In Mistrial

Apple has called Masimo's lawsuit a "manoeuvre to clear a path" for its own smartwatch.

A smartwatch trade secret lawsuit between Masimo and Apple has ended in a mistrial, as jurors failed to reach a unanimous verdict. Masimo and its spinoff Cercacor Laboratories sued Apple in 2020, claiming that Apple had used confidential information related to the use of light to measure biomarkers, including heart rates and blood-oxygen levels, to create and sell several Apple Watch models.

Masimo had asked for over $1.8 billion in damages, as reported by Reuters, but the judge dismissed some of its trade-secret claims during the trial. Apple has denied the allegations, saying that it "deeply respects intellectual property and innovation and does not take or use confidential information from other companies." The company will ask the court to dismiss the remaining claims in the case.

Masimo representatives met with Apple in 2013 to discuss integrating its inventions into Apple products. However, Apple subsequently hired away two executives, one from Masimo and one from Cercacor, and used their knowledge to copy the technology, according to the lawsuit.

Apple has called Masimo's lawsuit a "manoeuvre to clear a path" for its own smartwatch. Apple is also facing another potential Apple Watch import ban in a separate patent fight with AliveCor over heart-monitoring technology.

Although the jury in federal court in Santa Ana was unable to reach a verdict, Masimo intends to retry the case. The global sales of smartwatches, which are mobile devices worn on the wrist with an array of capabilities, are worth tens of billions of dollars, making the smartwatch industry a lucrative market.

Masimo has also sued Apple at the U.S. International Trade Commission over Apple Watch imports that it said violated its patent rights. An ITC judge preliminarily ruled in favour of Masimo in January, which could lead to an import ban on infringing Apple Watches if the full commission affirms the decision.