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Masimo Corp. and Apple Inc. have filed dueling post-trial briefs in a California federal court, following a retrial over allegations that Apple misappropriated Masimo’s trade secrets to develop blood oxygen measurement technology in its Apple Watch. The filings come as U.S. District Judge James V. Selna, who presided as fact-finder in the retrial, prepares to decide whether Masimo has proven its claims against the tech giant.

Masimo: Apple Poached Employees to Steal Trade Secrets

Masimo contends that Apple recruited key employees, including Dr. Marcelo Lamego, to gain access to its trade secrets related to pulse oximetry technology, which measures blood oxygen levels using light passed through the body. Masimo asserts that Apple’s smartwatches featuring this capability infringe on its intellectual property and has asked Judge Selna to block Apple from making or selling watches using the misappropriated technology.

“Each of Masimo’s trade secrets helps reduce signal noise, which is critical for calculating blood oxygen,” the company stated in its brief. Masimo argued that the feature was a major selling point for the Apple Watch Series 6 and Series 7, contributing significantly to Apple’s profits before the feature was disabled in early 2024 due to an International Trade Commission (ITC) ruling.

Masimo has also requested attorney fees, alleging that Apple’s actions were malicious and intentionally aimed at exploiting confidential information.

Apple: Masimo’s Claims Lack Evidence

Apple argues that Masimo has failed to substantiate its allegations over the course of the five-year litigation, dismissing Masimo’s trade secrets as either trivial or already known in the industry.

“Plaintiffs have had two chances—and five years—to back up their spurious claims that Apple stole their supposed intellectual property,” Apple said in its brief, urging the court to reject the claims entirely.

Apple maintains that the work on its optical health sensor began before Lamego joined the company in 2014 and asserts that Lamego’s contributions were minimal. Furthermore, Apple claims it explicitly instructed Lamego not to use proprietary information from his former employers while at Apple.

Apple also argued that Masimo’s trade secret claims have dwindled over time and now rest on just three elements: “black foam, a short circuit, and an algorithm ill-suited to wearable devices.” Apple insists these do not constitute protectable trade secrets and contends that Masimo has no evidence linking them to Apple’s smartwatch technology.

ITC Ruling and Broader Context

The dispute traces back to 2013, when Apple explored a potential partnership with Masimo on photoplethysmography technology, which monitors health metrics using light. Apple ultimately recruited Masimo employees instead, leading to claims of intellectual property theft.

In 2023, the ITC ruled that Apple Watches infringed on two Masimo patents and issued an exclusion order blocking the import of affected devices into the U.S.

Retrial and Next Steps

The retrial follows an April 2023 jury trial that ended in a hung jury. During that trial, Judge Selna dismissed several of Masimo’s claims, including one involving general business information.

In the retrial, Masimo maintains it took extensive steps to protect its trade secrets, such as confidentiality agreements and access restrictions, and argues that Apple targeted its employees to obtain those secrets. Apple counters that its engineers independently developed the health-sensing features central to the Apple Watch.

Both sides have requested attorney fees, with Apple accusing Masimo of pursuing baseless claims, while Masimo alleges Apple acted with intent to harm.