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Apple sued by medical device company Masimo for allegedly stealing tech for smartwatch

  • Apple got secret information under the guise of a working relationship then hired away key employees, Masimo claims in a lawsuit
  • This is not the first time Apple has been faced allegations of strong-arming information from companies that thought they were working with the tech giant

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A selection of Apple Watch Series 5 smartwatch devices sit on display inside the Regent Street Apple store during a product launch event in London, UK. Photo: Bloomberg

Apple is accused of stealing trade secrets and improperly using Masimo inventions related to health monitoring in its Apple Watch.

Masimo, which develops signal processing technology for health-care monitors, and its spinoff, Cercacor Laboratories, claim in a lawsuit that Apple got secret information under the guise of a working relationship and then hired away key employees, including Michael O’Reilly, who became vice president of Apple’s health technology efforts.

The business segment that includes the Apple Watch, Apple TV and Beats headphones is the company’s fastest-growing category and generated more than US$24 billion in sales in the fiscal year that ended in September.

Masimo and Cercacor said their technology for non-invasive monitoring using light was key to Apple overcoming performance issues with its smartwatch. Among the 10 patents Apple is accused of infringing are ones covering ways to measure oxygen levels in blood, and heart rate using light emitters and detectors.

The companies are seeking orders that would block further use of their patented inventions in the Apple Watch 4 and 5, return of confidential information and unspecified damages.

Officials with Cupertino, California-based Apple did not immediately return queries seeking comment.

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