Apple Ordered to Pay Additional $184M in Interest for Masimo Patent Infringement

Additional Interest Awarded

Apple has been ordered by a federal judge to pay an additional $184 million in interest to health technology company Masimo. This new payment is related to a previous ruling where Apple was found to have infringed on Masimo's patent for low-power pulse oximeter features used in the Apple Watch. The initial damages awarded were $634 million, making the total payment $818 million.

Background of the Dispute

The dispute between Apple and Masimo has involved multiple legal challenges. One significant outcome was an International Trade Commission ruling in 2023 that required Apple to remove the blood oxygen feature from certain Apple Watch models for US sales. Apple subsequently redesigned the feature to comply with this ruling. Separately, Masimo pursued a lawsuit seeking damages for Apple's use of its patented method for power-efficient blood oxygen measurement.

Judge's Rationale for Interest

Judge James V. Selna rejected Apple's argument that awarding interest would unfairly benefit Masimo. The judge cited US Supreme Court guidance, stating that interest from the time royalty payments would have been received serves to fully compensate the patent owner. While Masimo had requested a 7% interest rate, the judge set the rate equivalent to Masimo's own borrowing costs, with annual compounding leading to the $184 million additional sum.