A Federal Appeals court has allowed Apple to escape the full effects of a patent dispute with Masimo.
Apple will resume the sale of its latest smartwatch models in its US retail stores after winning a court ruling in a patent fight. The US International Trade Commission had banned the import and sale of the watches due to a patent infringement case brought by medical device maker Masimo Corp. However, an appellate court issued an interim stay of the ban while Apple appeals the decision. The watches will be available in stores beginning Wednesday and online starting Thursday. Apple has also developed a software update to address the patent issue and is awaiting approval from the US government. Masimo is seeking to intervene in the appeals case.
Industry Standards
In most industries, but more so in Information Technology, the name of the game is patents and intellectual property. Data, methods and hardware all get commodified for the long term profit. Currently, Apple is facing over 2000 lawsuits over patent disputes, which is extremely high, but again, part of the consequence of developing so much technology that overlaps with existing patents that simply were not marketed to the same extent.
Masimo is probably suing for royalties on the Apple Watch due to the usage of their innovative non invasive oxygen measurement device. According to Bloomberg analysts, the benefit to Masimo could be anywhere from 5 to 7 percent per watch sold, which is quite significant considering that the power of these sales lies in Apple’s recognized brand and form factor.