This is how the blood oxygen function of the Apple Watch could return

One of the biggest obstacles to switching to a new Apple Watch this year is that if you live in the US and currently own a model with blood oxygen monitoring, you wouldn’t get this feature in your new model.

The reason for this is the patent dispute between Apple and Masimo, but after the health technology company’s CEO resigned, there could be a possible way to resolve the matter…

A quick summary

Apple reportedly contacted Masimo back in 2013 to discuss a possible collaboration between the two companies. Instead, Masimo claims, Apple used the meetings to identify employees it wanted to poach. Masimo later called the meetings a “targeted attempt to obtain information and expertise.”

Apple actually hired a number of Masimo employees ahead of the Apple Watch launch, including the company’s chief medical officer.

Masimo CEO Joe Kiano later expressed concerns that Apple may have tried to steal the company’s blood oxygen sensor technology. The company describes itself as the “inventor of modern pulse oximeters” and its technology is used in many hospitals.

A complaint to the International Trade Commission led to a compromise ordering Apple to remove the feature from new watches sold in the US starting January 18 this year. There was no need to disable the feature in watches already sold, but it could not be integrated into new watches.

The lawsuit resulted in five of Masimo’s claims being rejected and the jury unable to agree on the rest. There will be a new process for this, the date of which has yet to be determined.

The dispute appears to be deadlocked so far

I have argued that the current standoff is damaging to both Apple and its customers, whatever the pros and cons of the case. I suggested that Apple grant a license first and argue later.

I am not asking them to admit wrongdoing, just a pragmatic decision to keep the technology available until the matter is finally resolved. If Apple wins, the company can file a lawsuit seeking a refund of patent fees.

So far, both Apple and Masimo have taken a hard line. Apple has refused to license the technology, and former Masimo CEO Joe Kiani had claimed he wouldn’t agree to it anyway.

But the CEO’s resignation offers an opportunity

However, Kiana has since left the company and has been replaced by Michelle Brennan.

Although neither Masimo nor Brennan have revealed the reason for this, it doesn’t seem impossible that it has to do with Kiani’s handling of the dispute. A new manager creates the opportunity for a new attitude to the matter.

That may solve half the problem – Masimo’s refusal to sell a license – but what about Apple’s equally stubborn refusal to buy one?

Bloomberg’s Mark Gurman, who shares my view that the issue should have been resolved months ago, believes a compromise could be reached that would benefit both companies without any money changing hands.

I don’t think Apple wants to enter into a licensing agreement, but I could imagine a deal – financial or otherwise – that would allow both sides to stop all litigation […] Apple could agree to work with Masimo to integrate that company’s popular hospital devices into the Health app.

This way, Apple Watch owners would get not one, but two benefits. They would get the blood oxygen measurement back, but also integrate all hospital tests with the Masimo kit into their Apple Health data. This would give hospitals a reason to switch to the new Masimo kit, which would bring additional sales to the company.

How realistic this prospect may be is unclear, but it would at least offer both companies a face-saving end to the dispute.

Photo by Klim Musalimov on Unsplash