It has been a busy year for Philips ($PHG), complete with corporate restructuring and new additions to its product portfolio. But the company encountered pushback in October when it was slapped with a $466 million verdict in its patent infringement battle with Masimo.
|Philips' G3 handheld pulse oximeter|
After a two-week trial, a jury in Wilmington, DE, found that Philips infringed Masimo's two patents for technology used in fingertip pulse oximeter devices that measure blood oxygen and pulse rates using light absorption. Philips argued that the patents were invalid because they weren't properly written and that the technology is obvious, but a panel of 8 jurors disagreed and ordered the Amsterdam-based devicemaker to pay damages. None too pleased with the jury's decision, Philips said that it intends to appeal the verdict.
The courtroom hoopla dates back to 2009, when Masimo sued an Andover, MA-based division of Philips for allegedly importing oximeter products in violation of two of its U.S. patents, seeking $650 million in damages. Philips responded with its own allegations, claiming that Irvine, CA-based Masimo infringed on a Philips patent and should pay Philips $169 million in damages.
Philips slapped with $466M verdict in Masimo patent battle