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Technology Stocks : Apple Inc.
AAPL 270.80-1.0%1:49 PM EST

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To: John Koligman who wrote (212699)1/18/2024 3:15:29 PM
From: Art Bechhoefer2 Recommendations

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John Koligman

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What would be a fair royalty for Apple to pay to Masimo for patent infringement? $30 for each Apple watch sold that can measure blood oxygen saturation? Or more? Remember that Apple poached about 20 key Masimo employees in order to come out with a competing product. That suggests to me that Apple may have intentionally infringed the patent[s] developed initially by Masimo and may be entitled to treble damages.

So any settlement of the issue would have to take into account the full damages, not just potentially lost sales by Masimo. That would be one reason why Masimo is willing to go to trial, if need be. And preparation for trial may be the only way Masimo can reach some out of court resolution. Remember that patent litigation between Apple and Qualcomm about 4 years ago was settled on the courthouse steps, only after Qualcomm was ready to issue its opening statement.

Even though the burden of proof rests with Masimo, it appears that Masimo has a strong case, as shown by Apple voluntarily removing the blood oxygen feature following a court ruling banning sales of any Apple model that incorporates it.

Art
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