Masimo CEO Kiani is rolling the dice looking to win a big settlement and licensing fee from Apple

Masimo CEO Kiani is rolling the dice looking to win a big settlement and licensing fee from Apple،

In an interview with The Wall Street Journal (via 9to5Mac), Masimo founder and CEO Joe Kiani claims the company spent $100 million on its lawsuit against Apple that began four years ago. This is a huge amount of money for Masimo to spend, considering the company's profit last year was $144 million. The suit alleged that Apple infringed Masimo's patents related to the pulse oximeter used on certain Apple Watch models.

Kiani says someone needs to stand up to Apple

The pulse oximeter measures the oxygen saturation carried in a person's red blood cells and should be between 95% and 100%. A reading below 95% means the person has low oxygen levels, i.e. hypoxemia, and may need supplemental oxygen. It could also indicate a problem with a person's lungs.

Getting Your Blood Oxygen Reading on the Apple Watch - Masimo CEO Kiani is rolling the dice and looking to win a big settlement and licensing fee from Apple.

Get your blood oxygen reading on Apple Watch

Why is Kiani willing to spend so much of Masimo's money on this particular matter? His response was: “No one stands up to them. If I can do it, it might change Apple for the better. The response also makes Kiani look like a martyr willing to take such a big financial hit just to teach Apple a lesson.

As is often the case with martyrs, Kiani was warned by his friends and other Masimo employees of the risks of attacking his target. “People told me I'm crazy and I can't take on Apple. They have unlimited resources.” Kiani had a friendship with President Biden and perhaps thought it would prevent the president from issuing a veto of the International Trade Commission's exclusion order.

Biden didn't bail out Apple, but the company got a reprieve when the U.S. Court of Appeals for the Federal Circuit stayed the exclusion order and ordered the ITC to respond to Apple's request. Apple for a longer-term suspension before January 10. If the court rules in favor of Apple, the tech giant could have weeks or months while the exclusion order remains pending to appeal the original ruling against Apple last January. This decision indicated that Apple had infringed Masimo's patents.

With the exclusion order suspended for now, Apple has also reportedly developed an alternative method for the Apple Watch to measure the oxygen level in a wearer's blood. Apple has reportedly submitted the changes to US customs with a decision set for January 12. If the agency agrees that the changes mean Apple is no longer infringing Masimo's patents, Apple will be allowed to ship affected watches with the changes.

Kiani has collected more than $2 billion in previous patent infringement cases dating back to 2006

Although this battle with Apple could take many more years to resolve, Kiani has already shown patience and determination. In 2006, Kiani won a patent dispute with rival pulse oximeter maker Nellcor and collected nearly $800 million in damages and royalties. In another patent infringement case from 2016, Masimo collected $300 million from Royal Philips and got another $1 billion in licensing fees.

Kiani may appear to have altruistic motivations for taking on Apple. “I feel like I have to do this. If I can stop the most powerful company in the world from continuing to do bad things, that will have more impact on the world than anything else I do,” he says . But as previous cases against Nellcor and Royal Philips prove, he's not against rolling the dice and spending $100 million with the possibility of adding $1 billion or more to the company's coffers .

Given the importance of the Apple Watch and its reputation as a lifesaving device for Apple, the company may have to give in and license Masimo's IP, especially if its workaround isn't enough to get Apple out of Masimo's patents.