Masimo CEO Explains Why Spending Over $100 Million to Challenge Apple Could Lead to Positive Changes for the Tech Giant

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Apple’s Ongoing Patent Dispute with Masimo

Despite the Apple Watch being available for purchase again, Apple is still embroiled in a patent infringement battle with the medical device manufacturer Masimo. Masimo’s CEO, Joe Kiani, spoke with The Wall Street Journal about his commitment to continue fighting, stating, “No one is standing up to them. If I can do it, it might change Apple for the better.”

The Cost of Legal Battles

According to the interview, Masimo has invested approximately $100 million in the conflict against Apple, which commenced in January 2020. This expenditure is significant given that Masimo’s net profit in 2022 amounted to roughly $144 million.

Warnings Against Challenging Apple

Prior to clashing with Apple, friends and colleagues cautioned Kiani about the risks of confronting a giant with seemingly unlimited resources. Kiani recounted, “People were telling me I’m crazy and I can’t go against Apple.”

Masimo’s History of Legal Victories

Despite the daunting challenge posed by Apple, Masimo has a history of succeeding in similar legal disputes. Kiani emerged victorious in a prolonged patent conflict with Nellcor in 2006 and defeated Royal Philips in another patent infringement lawsuit in 2016.

Significant Settlements from Past Litigations

As a result of these legal successes, Masimo secured substantial settlements, including nearly $800 million from Nellcor in 2006 and $300 million from Royal Philips in 2016. Furthermore, the settlement with Royal Philips also led to a lucrative licensing agreement, generating over $1 billion for Masimo.

Stalemate in Settlement Discussions with Apple

Kiani indicated that Apple has not yet engaged in “serious discussions about a settlement” despite Masimo’s openness to resolving the issue. He mentioned that while Masimo is willing to negotiate, it requires cooperation from both sides.

The Bigger Picture for Kiani

Kiani expresses a strong sense of duty, believing that impacting change in the conduct of the most influential company in the world would have a more significant effect than any of his other endeavors.

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