Apple Accused Of Stealing Health Tech For Apple Watch

Yolanda Curtis
January 13, 2020

In a lawsuit, Masimo, who develops signal processing technology for health monitors, and the spin-off from Cercacor Laboratories Inc. claim that Apple received secret information under the guise of an employment relationship and then turned off key employees, including Michael O'Reilly, the vice president of Apple's health technology effort has been.

Apple accused of stealing trade secrets and improperly using Masimo Corp. inventions related to health monitoring in its Apple Watch. Following what Masimo considered productive meetings, Apple began poaching away important Masimo employees.

The business segment that includes the Apple Watch, Apple TV and Beats headphones is the company's fastest-growing category and generated more than $24 billion in sales in the fiscal year that ended in September. The lawsuit claims that these patents were used for the Apple Watch series 4 and series 5-in fact, Masimo says that Apple did so knowingly. The blood oxygen monitoring system and the heart rate detection in Apple Watch run through the light emitters.

Masimo and Cercacor are aiming to block further use of their patented inventions and are asking for unspecified damages.

Officials with Cupertino, California-based Apple didn't immediately return queries seeking comment. There isn't much information about this accusation as of now but should be getting more information soon. Marcelo Lamego, who served as CTO of Cercacor, for example, joined Apple not long after O'Reilly.

Both companies insist that Apple knew it was getting confidential information from the two men, and in fact are alleging that Apple hired both of them for that express objective, describing it as "a targeted effort to obtain information from Masimo and Cercacor".

Neither of the two men was named as the accused in the lawsuit.

The document States that in 2013 Apple wanted to do with Masimo cooperation, and in the process the representatives of the Corporation have time to look at the individual experiences of the potential partner. If successful, Masimo would be joint owners with Apple on four critical Apple Watch patents.

The Apple Watch has enjoyed a reputation as an excellent fitness companion thanks to its smart health features, which have even played a part in saving lives (more than once).

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