Apple Watch faces oximeter patent infringement: settlement or redesign?

In late December 2023, Apple encountered a setback in the U.S. as certain Apple Watch models faced a sales suspension due to alleged patent infringement related to Masimo’s blood oxygen detection technology. The regulatory authorities will review Apple’s updated designs by mid-January 2024, and the potential financial and time costs associated with settlement or redesign have raised questions about the future of blood oxygen monitoring in Apple Watches.

Apple‘s appeal for reinstatement is met with two potential routes. The first involves significant adjustments to both software and hardware aspects of the Apple Watch, requiring the tech giant to reapply for approval, undergo extensive testing, and potentially resume sales. However, given Apple’s annual product release schedule and the time-consuming nature of hardware modifications, this option appears impractical.

The second route suggests a settlement with Masimo. Apple’s settlement history, marked by payments in the millions or even billions of dollars, reflects the challenges the company has faced in legal disputes, such as those with Qualcomm. Settling with Masimo would not only have financial implications but might also lead to Apple admitting to incorporating allegedly stolen technology, risking its global goodwill.

Settlement for the oximeter patent infringement appears to be the most appealing option

Apple has a narrow window of opportunity to decide its next move. If the Cupertino-based giant fails to deal with the infringement of its current-generation Apple Watch models through a software update, settling with Masimo might become the only viable option.

The original dispute stems from Masimo accusing Apple of patent infringement in 2020, leading to a legal battle that culminated in a sales ban on certain Apple Watch models in late 2023. The blood oxygen monitoring technology, a key feature in Apple Watches since the S6 model, relies on both software-related analytical applications and specific hardware configurations.

Considering the contextual significance of blood oxygen monitoring amidst the ongoing global health situation, the demand for this feature in smartwatches remains substantial. However, Apple’s decision-making becomes complicated as a result of the potential need for extensive modifications and the financial implications of settling with Masimo.