Apple Ordered to Pay Masimo $250 Million in Landmark Patent Infringement Ruling

A U.S. District Court in Delaware has ordered Apple to pay Masimo $250 million in damages for willful infringement of patents related to blood oxygen monitoring technology found in various Apple Watch models. The ruling, reported widely on November 15, 2025, follows a jury verdict earlier in the week and marks a significant financial penalty in the long-running dispute between the tech giants.

The judgment specifically addresses the use of Masimo's patented technology, affecting Apple Watch Series 6 through Ultra 2. The court's decision included an injunction that prevents Apple from selling unmodified watches in the U.S. that still contain the infringing features. Apple had already begun implementing design changes, including disabling the contested pulse oximetry function in U.S. models since 2024, to navigate previous regulatory challenges.

Financial Penalties and Case Background

The $250 million in total damages is broken down into $150 million for lost profits and an additional $100 million in royalties. These figures are based on sales of infringing Apple Watch units from 2020 through 2024. The lawsuit, initially filed in January 2020, escalated through several phases, including an ITC import ban in October 2023 and a federal appeals court upholding Masimo's claims on two key patents (U.S. Patent Nos. 10,945,648 and 10,687,745) in October 2025. This latest ruling brings a direct financial consequence, a shift from earlier strategies by Apple to circumvent bans through feature disabling. Masimo had previously sought a larger sum, up to $1.8 billion, but the court adjusted the final damages.

Market reactions were swift following the November 15 ruling. Apple's stock saw a 2.5% dip, closing at $218.50 per share, while Masimo's stock experienced an 8% increase, rising to $145.20.

Company Stances and Technological Implications

In a press release dated November 15, 2025, Apple stated its intent to appeal the decision. The company affirmed it "respect[s] the court's decision but disagree[s] with the findings," asserting that its technology was developed independently. They also highlighted ongoing innovation in health features and reiterated that affected watches are still available with software updates that disable the infringing pulse oximetry functionality within the U.S.

On the other side, Masimo's CEO issued a statement calling the ruling a "vindication of our intellectual property." The company suggested the payment could help fund future research and development in non-invasive monitoring technology. While accusing Apple of "poaching talent and ideas," Masimo also expressed openness to potential licensing discussions.

The patented technology at the heart of the dispute is Masimo's SET (Signal Extraction Technology), known for providing accurate pulse oximetry readings even in challenging scenarios like motion or low perfusion. Masimo claims its technology reduces errors by up to 50% in clinical tests compared to other implementations. Apple's response has included a recent watchOS 12.1 software update, released on November 10, which aims to improve AFib detection, signaling a focus on other health differentiators. Masimo, meanwhile, announced enhancements to its W1 watch on November 14, including FDA-cleared, AI-driven sleep apnea detection, positioning its device as a more medically-focused alternative.

Broader Market Impact and International Outlook

The ruling primarily impacts the U.S. market regarding the injunction, although the $250 million payment encompasses global infringement claims. This case is seen by analysts as a victory for smaller innovators, potentially setting a precedent in the health tech sector where patent litigation is on the rise. Some analysts predict it could slow Apple's rollout of advanced health features.

Internationally, the European Patent Office (EPO) is reviewing similar patents, with a hearing scheduled for December 2025 that could lead to additional fines up to €200 million if claims are upheld. In Asian markets like China and India, Apple currently faces no immediate bans but is contending with increased competition from local brands that have licensed similar technologies. Masimo has been expanding its presence in emerging markets, recently announcing partnerships in India for affordable oximeters on November 13, 2025.