Apple ordered to pay Masimo another $184 million in patent interest

A federal judge ordered Apple to pay Masimo an additional $184 million in interest in a case involving a patent for power-efficient blood-oxygen measurement used in the Apple Watch.

Apple had already been ordered nearly a year ago to pay $634 million in damages. Annual compounding brought the added interest to $184 million.

Judge rejects Apple’s windfall argument

Judge James V. Selna rejected Apple’s argument that the interest award would give Masimo an improper windfall. He cited US Supreme Court guidance that interest covering the period when royalty payments should have arrived compensates the patent owner for the delay.

Masimo had sought a 7% interest rate, but the judge declined to use it. Instead, the rate was tied to Masimo’s own borrowing costs, while annual compounding still increased the amount owed by $184 million.

Apple Watch blood-oxygen restrictions

Apple had also faced Masimo before the US International Trade Commission. In 2023, the commission ruled that Apple had to remove the blood-oxygen feature from two Apple Watch models to sell them in the United States.

Apple redesigned how the feature worked to continue bringing the devices into the US. Masimo’s lawsuit concerned Apple’s use of its patented power-efficient method for measuring blood oxygen, for which the court found Apple should have paid licensing fees.