Apple Legal Battle Among Masimo's Rising Litigation Costs

[MacRumors]

Medical technology company Masimo has been facing off with Apple in court since 2020, and while Masimo has scored some wins, it's been an expensive endeavor.

In its quarterly earnings reports, Masimo outlines how much it has spent on litigation. The way Masimo's spending is reported has changed over the last five years, but looking at earnings reports and information from Masimo executives gives a look at how much legal fights can cost.

Masimo's ITC case against Apple began in 2021, and it ultimately led to an Apple Watch import ban. Apple was forced to remove blood oxygen monitoring from Apple Watches sold in the U.S. in December 2023. Masimo spent $5.5 million on litigation expenses in 2021, followed by $28.7 million in 2022. The company spent over $40 million in 2023, and $70 million in 2024.

In the first quarter of 2025, Masimo spent $19.7 million, and in its second quarter earnings results shared this week, Masimo said it spent $24 million on litigation. Masimo could be on track to spend more in 2025 than it did in 2024, based on its legal costs in the first and second quarters. It is worth noting that these litigation figures include all of Masimo's legal spending, and not just Apple-related costs. Masimo has other expenses, which includes the recent ousting of former Masimo CEO Joe Kiani.

Still, Masimo's legal expenditures have not been inconsequential, according to Masimo. In December 2023, then Masimo CEO Joe Kiani told The Wall Street Journal that the legal battle against Apple had cost Masimo around $100 million. In the two years since, legal costs could have significantly exceeded that figure, but Masimo's quarterly reports do not break down what portion of total litigation expenses are Apple-specific.

Right now, Masimo is embroiled in the appeals process with Apple, as Apple launched an appeal in late 2023. Most recently, Apple argued its appeals case to a three-judge panel, though no decision has been made as of yet.



Article Link: Apple Legal Battle Among Masimo's Rising Litigation Costs

 

[MacUserFella]

$100 million

 

[richpjr]

Legal fees are insane. I have gone through a couple of lawsuits at work where we sued a couple of sleazy competitors, won both cases and lost a ton of money in the process.

 

[DocMultimedia]

Ugh. Settle and let us have O2 once again.

 

[ZipZilla]

What is the endgame for Masimo? Wouldn't a simple licensing agreement 5 years ago been more profitable?

 

[richpjr]

What is the endgame for Masimo? Wouldn't a simple licensing agreement 5 years ago been more profitable?

It sure would seem so.

 

[lazy_desi_]

the middle man is making a mint.

 

[WilliApple]

Could this be added as damages?

 

[MrkJensen]

— and here I was thinking only the “evil” Chinese were out there stealing intellectual property from those pure and blameless U.S. companies.

 

[jz0309]

These litigation figures include all of Masimo's legal spending, and not just what the Apple-related costs. The Apple lawsuit is Masimo's most significant legal battle, however, and it likely accounts for most of Masimo's total spending.

How do you know that? is that spelled out in the report? doubtful ...
yes, lawyers are expensive, a known fact.

So Masimo, was it worth it to you? Given those patents will expire in I think 2 (or 3) years - only you can answer.

In December 2023, then Masimo CEO Joe Kiani told The Wall Street Journal that the legal battle against Apple had cost Masimo around $100 million. Looking at the legal costs Masimo reported in 2024 and 2025, the total could be approaching $200 million.

and that guy got ousted, probably cost millions in legal fees plus a golden parachute ...

 

[LawJolla]

While the courts are not required to grant attorney's fees, given Apple's intentional behavior, I'll be surprised if they don't end up paying a large portion of it.

 

[alchemistmuffin]

In its quarterly earnings reports, Masimo outlines how much it has spent on litigation. The way Masimo's spending is reported has changed over the last five years, but looking at earnings reports give a general idea of the cost to sue Apple and how those costs can balloon.

And this is Apple’s strategy, a risky one. Apple likley knows Masimo doesn’t have any cash in long run so continuing the lawsuit will drain them. Classic strategy in hopes for Masimo to settle in favor of Apple’s term or company shuts down and sell the patents. Or best yet, Apple buys the company just for the technology.

 

[now i see it]

it all goes into the lawyers' pockets

 

[hieranonymous]

At this point it feels like Apple’s strategy is to drown them in legal fees rather than just pay them some pittance to go away. I sincerely hope this year’s Apple Watch models will have a redesigned pulse-ox sensor, because continuing to ship watches with a disabled sensor for a year-and-a-half is absolutely deranged.

 

[smeagol]

Light work. You think legal fees are expensive? You should see how much my local hospital charges to stay one night. 😂

 

[kalafalas]

I just want my blood oxygen sensor re-enabled, make it happen.

 

[jz0309]

And this is Apple’s strategy, a risky one. Apple likley knows Masimo doesn’t have any cash in long run so continuing the lawsuit will drain them. Classic strategy in hopes for Masimo to settle in favor of Apple’s term or company shuts down and sell the patents. Or best yet, Apple buys the company just for the technology.

Masimo is a public company, after earnings announcement this week stock slid 10+%, now their market cap is $7.8B. I don't think they were ever cash strapped in the past 5 years of this litigation ...

 

[Boeingfan]

And the lawyers keep wringing their hands 🙌

 

[cdsapplefan]

If the courts don’t grant Masimo relief from Attorney fees then they may just settle with Apple 🍎 especially since they know in 2028 their patents will expire and then they will
get nothing from Apple 🍎 not a penny 🪙

 

[Baritone_Guy]

Ugh. Settle and let us have O2 once again.

What is the endgame for Masimo? Wouldn't a simple licensing agreement 5 years ago been more profitable?

They should settle. Apple needs to pay fairly for the license. They refuse to do so.

 

[UliBaer]

That's the problem, the more money, the more justice could be bent. This is simply wrong.

 

[cdsapplefan]

That's the problem, the more money, the more justice could be bent. This is simply wrong.

Well Masimo makes billions in revenue so they can afford it.

 

[ThisIsMike]

100-200 million?! is that all? LFG!!!!

 

[coolfactor]

$70 MILLION in one year? That's $8000 per hour if billed for every hour of the year. That's almost criminal in itself...

 

[jz0309]

If the courts don’t grant Masimo relief from Attorney fees then they may just settle with Apple 🍎 especially since they know in 2028 their patents will expire and then they will
get nothing from Apple 🍎 not a penny 🪙

the courts might grant Masimo relief IF Masimo would sue Apple - that didn't happen, Masimo went down the ITC route and was successful and resulting in the import ban ...