Masimo board shakeup may alter course in Apple patent dispute
In a move that could potentially impact its ongoing patent battle with Apple, there has been a board shake-up at Masimo. Activist investor Politan Capital has secured two seats. This development has sparked speculation about the future direction of the company and its high-profile litigation.
Masimo is perhaps best known for its pulse oximetry technology. It is precisely this tech that has been embroiled in a legal dispute with Apple. The conflict has had far-reaching consequences, most notably the absence of blood oxygen monitoring features in the latest Apple Watch models sold in the US. If you buy the device from other regions, such as Europe, you do have the feature. But not in the US.
Now there’s been a new development.
As reported by CNBC, there a shareholder vote took place last Thursday. And this resulted in Politan nominees Darlene Solomon and Bill Jellison joining the board. They will work alongside Politan investment chief Quentin Koffey and former Johnson & Johnson executive Michelle Brennan. The duo has had previously secured board seats in an earlier proxy fight.
What’s more, this saw the ouster of Masimo’s founder and CEO Joe Kiani from the board. Adding another layer of complexity to the situation is Kiani’s previous statement that he would step down as CEO if he lost his board seat.
The implications of this board shakeup extend beyond the company’s internal dynamics. In the world of corporate governance, it’s not uncommon for new leadership to pursue fresh strategies. This sometimes includes the resolution of ongoing legal disputes. Might this indicate potential for a shift in the company’s approach to its litigation with Apple?
There’s always the possibility. For now it seems that Apple is planning to wait out until the Masimo patent expiration date. This is in 2028 in case you were wondering.
Masimo’s new partnership
The timing of these events is particularly intriguing when viewed against the backdrop of Masimo’s recent partnerships with Google and Qualcomm. These deals aim to bring Masimo’s biosensing technology to Wear OS smartwatches. This move appears to position Masimo as a key player in setting standards for blood oxygen monitoring across the smartwatch industry, beyond its dispute with Apple.
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In a conversation with the Verge, Kiani has emphasized that this new partnership is driven by a desire to ensure accuracy and reliability. He points to Masimo’s FDA clearances as a testament to the company’s commitment to providing scientifically validated health data.
As the dust settles on this board room shakeup, we will be watching closely to see how Masimo’s new leadership navigates its ongoing legal dispute. At the moment it’s premature to predict the exact course Masimo will take. But one thing is clear: the changes at the board level have the potential to significantly alter this. Whether this will lead to a resolution of the Apple dispute, an acceleration of Masimo’s expansion into consumer wearables, or perhaps a completely new direction remains to be seen.
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