A late-night email to Apple Inc.‘s AAPL CEO, Tim Cook, a decade ago could have been the catalyst for the ongoing high-stakes clash between the tech giant and medical device maker Masimo Corporation MASI.
The dispute centers on alleged patent infringement, poached talent, and the pivotal role of a blood-oxygen monitoring feature that now defines the Apple Watch’s health capabilities.
The Spark
In 2013, a scientist named Marcelo Lamego fired off an email to Cook, pitching a vision that could propel Apple to the forefront of the medical, fitness, and wellness market, Bloomberg reported, citing legal documents.
"I strongly believe that we can develop the new wave of technology that will make Apple the No. 1 brand in the medical, fitness and wellness market," he wrote, as per the report.
A chain of events then set off, leading Lamego, a former CTO of Cercacor Laboratories (a Masimo sister company), to join Apple. His mission: to contribute to the development of a smartwatch with groundbreaking health sensors. This is reportedly what prompted Masimo’s lawyers to go after Apple.
See Also: Everything You Need To Know About Apple (AAPL) Stock
The Patent Storm
During his tenure at Apple, Lamego reportedly urged the filing of numerous patents related to health sensors and algorithms, particularly those detecting blood-oxygen levels in wearables.
However, Masimo alleges that Lamego, lacking prior knowledge of this technology, gained expertise at Masimo’s companies before delivering it to Apple.
The legal tussle intensified as Masimo claimed that Apple’s recruitment practices infringed on its patents and undermined its business.
Lamego resigned shortly after joining, prompting conflicting narratives. While Masimo claims Apple let him go after obtaining the desired sensor technology, a senior Apple executive reportedly contends that Lamego’s departure resulted from a mismatch with the company culture.
The Ban
The culmination of this legal saga saw Apple pulling its latest Watches from U.S. stores, impacting a robust business generating approximately $17 billion annually. A U.S. appellate court recently temporarily halted the ban, providing a respite for Apple in its legal quagmire.
The Battle Lines
Masimo contends that Lamego took its blood-oxygen monitoring technology to Apple, Bloomberg reported, fortifying the Watch’s position as a leading health device.
Apple vehemently denies any wrongdoing, emphasizing internal development timelines and contesting claims of employee poaching.
The Road Ahead
Masimo seeks a settlement that could add Apple to its list of tech companies licensing its medical technology. While Apple has held mediation talks, the saga highlights the intense competition in the lucrative wearables market and the challenges posed by overlapping technologies.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Image made vis photos from Shutterstock and Apple
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