A seemingly innocuous email sent in the dead of night back in 2013 has ignited a fierce legal battle between Apple and Masimo, culminating in a recent ban on Apple’s latest smartwatch models in the US, according to a new Bloomberg report. The saga delves deep into the murky waters of intellectual property, technical expertise, and the competitive landscape of wearable technology.
The chain of events began with an after-hours email to Tim Cook, Apple’s CEO, from Marcelo Lamego, a scientist specializing in health sensors. Lamego’s proposal promised revolutionary advancements in non-invasive blood-oxygen monitoring, a feature highly sought after in the emerging wearable health market. Apple, recognizing the potential, swiftly recruited Lamego, hoping to integrate his expertise into their smartwatch project and kickstart their dominance in the health and fitness arena.
However, Masimo, a prominent player in the medical device industry with expertise in blood-oxygen monitoring, entered the scene with explosive accusations. Claiming Lamego had accessed their proprietary technology during his stint at the company, Masimo alleged that Apple’s blood-oxygen feature in the Apple Watch infringed upon their patents. This initiated a multi-year legal battle, with Masimo seeking billions in damages for alleged employee poaching and trade secret theft.
While a jury ultimately sided with Apple in one lawsuit, the International Trade Commission (ITC) reached a different verdict. Ruling in favor of Masimo, the ITC issued an import ban on Apple’s newest smartwatch models, the popular Apple Watch Series 9 and Apple Watch Ultra 2, citing patent infringements. This decision dealt a significant blow to Apple, causing a week-long disruption in sales during the crucial holiday season.
The dispute hinges on the significance of blood-oxygen monitoring, not merely as a fitness metric but as a potentially crucial health indicator. The feature gained prominence during the COVID-19 pandemic, with studies highlighting its potential in identifying patients struggling with breathing difficulties. By including it in the smartwatch, Apple aimed to transform the device from a timepiece into a comprehensive health tracker.
Masimo, despite its relatively smaller stature compared to the tech giant, has emerged as a formidable opponent. Their success in securing the import ban marks a significant victory for a company often overshadowed by larger players, demonstrating the potential of smaller entities to challenge established giants.
To fully grasp the intricacies of the Apple Watch debacle, it’s crucial to understand the key players and internal dynamics at play. Marcelo Lamego, the scientist whose late-night email ignited the dispute, holds a central position. He joined Masimo in 2003, ascending to the role of chief technology officer at Cercacor, a Masimo spin-off co-led by Joe Kiani, the visionary inventor behind much of their core technology. This shared history becomes relevant when Masimo accuses Lamego of leveraging Masimo’s knowledge during his short stint at Apple.
Lamego’s departure from Apple in July 2014, just months after joining, raises further questions. Masimo paints it as a strategic exit after Apple acquired the necessary expertise, while Apple executive Steve Hotelling offers a contrasting perspective. According to Hotelling in a court hearing, Lamego’s demanding nature, including clashes with managers, requests for hefty budgets, and desire for independent hiring, led to an amicable parting of ways. This internal discord adds another layer to the complex narrative.
The significance of the Lamego email as evidence also deserves further examination. While it served as a crucial piece for Masimo’s case, its impact in court was limited. A senior Apple engineer’s testimony revealed that development of the blood-oxygen feature commenced in late 2014, after Lamego’s departure. This timeline weakens the direct link between Lamego’s knowledge and the infringed-upon technology, adding yet another twist to the story.
The story remains far from over. Apple is actively working on software tweaks to appease the ITC and get their watches back on US shelves. Masimo, on the other hand, is seeking an official apology and potentially a lucrative licensing agreement. With both sides unwilling to budge, the companies are set to face off in court once again next year.
