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Apple's Watch infringed a rival's blood-oxygen patent — the US banned it at the border

A patent fight with medical-device maker Masimo got the Apple Watch Series 9 and Ultra 2 banned from import, then cost Apple $634M in a separate jury verdict.

Apple · Masimo · 2023-10-26

What happened

Masimo, a maker of hospital pulse-oximetry monitors, accused Apple of hiring away its engineers and building the Apple Watch's blood-oxygen sensor on patented light-based measuring technology it never licensed. On 26 October 2023 the US International Trade Commission ruled the Apple Watch Series 6 through 9 infringed two of Masimo's patents and ordered an import ban on the offending models, effective 26 December 2023.

Because the ban only stopped new units crossing the border, Apple could keep selling Watches already in the US — but it chose to pull the Series 9 and Ultra 2 preemptively, halting online sales on 21 December and in-store sales on 24 December, then shipped a software update that recalculated blood-oxygen readings differently to try to route around the injunction. A US Court of Appeals judge granted Apple a temporary stay days later, and sales resumed while the appeal proceeded.

The ITC case never awarded Masimo a cent — an import ban is not damages. That came separately: a 2023 trade-secret trial over the same underlying dispute ended in a hung jury after the judge capped potential damages at $1.85 billion, but a follow-on patent-infringement suit reached a federal jury in November 2025, which ordered Apple to pay Masimo $634 million for infringing its smartwatch patents. Apple said it disagreed and would appeal.

Why it happened

  • Masimo alleged Apple built the Watch's headline health feature by hiring engineers who had built Masimo's, putting a mass-market feature on a patent foundation Apple didn't own.
  • An import ban has no price tag on its own — Apple's answer was a rushed pre-Christmas sales freeze and a software patch aimed at the injunction, not a settlement with Masimo.
  • Winning the trade-secret trial (a mistrial, not an acquittal) didn't end the exposure: the patents still stood, and a second jury two years later attached $634 million to them.
What it cost$634M jury verdict; Series 9/Ultra 2 import bancostly

The lesson

An import ban and a damages verdict are two different bills for the same infringement — dodging the first with a software patch doesn't make the second smaller.

Aftermath

Apple's appeal of the Federal Circuit stay and the November 2025 damages verdict remained unresolved as of this writing. Masimo's own board fight cost CEO Joe Kiani his job in September 2024 after an activist-investor proxy contest, and the company agreed in early 2026 to be acquired by Danaher for roughly $10 billion — a sale that closed the underlying medical-device business's independence at almost exactly the point its patent fight with Apple paid off.

Sources

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