Apple Poached Employees and Used Underhanded Tactics to Steal Trade Secrets, Alleges Masimo

Apple's legal battle with pulse oximetry company Masimo has been taking place over the course of the last two weeks, but we've heard little about it. The judge overseeing the case sealed some parts of the trial, but legal affairs journalist Meghan Cuniff, who has been following the dispute, today shared some details on what the two sides are arguing over in court.

apple watch series 8 red
For a refresher, Masimo has accused Apple of poaching employees and stealing trade secrets for the Apple Watch. Masimo believes that Apple developed five pulse oximetry patents using trade information stolen from Masimo. Masimo wants co-ownership of the patents and a payout of $3.1 billion. It is worth noting that Masimo previously targeted Apple with patent infringement claims, but the United States Patent and Trademark Office invalidated all but two of the patents, which is when Masimo turned to theft of trade secrets.

Apple hired Masimo Chief Medical Officer Michael O'Reilly in July 2013 and Cercacor Chief Technical Officer Marcelo Lamego in early 2014 (Cercacor is a Masimo spinoff company) to work on the Apple Watch. Masimo claims that Apple was deliberately stealing employees and that Lamego in particular shared secret Masimo information with Apple, while Apple claims that the hiring of the two had nothing to do with their prior experience at Masimo and was based on their talent. Apple maintains that the former Masimo employees did not divulge Masimo's intellectual property rights when they worked on the Apple Watch, despite Masimo's accusations.

Lamego was only at Apple for six months, but he filed for 12 patents in that time and was named as an inventor on several future Apple patents. He worked on the same kind of sensor that he had worked on at Masimo, which Masimo has taken issue with. Lamego was hired at the recommendation of O'Reilly, who at the time warned Apple that "most of his knowledge" would be "considered confidential information of Cercacor or Masimo." Apple, meanwhile, pointed to an email Lamego sent to Apple CEO Tim Cook where he said that he could "add significant value" to Apple without relying on the work he did for Masimo. Hiring emails suggest that Apple was interested in his "specialized experience" needed for Apple Watch sensors.

Lamego claims that when he worked on the Apple Watch's heart rate detection algorithm, he had to "exercise extra care to avoid IP conflict." Lamego said that his work for Apple was stunted after Masimo sent a threatening letter not long after his hiring, which caused Apple to pull back on the resources provided to him. He ultimately left, but Masimo maintains that what he shared with Apple during that time was instrumental to the development of the Apple Watch. The patents that were issued to Apple in 2019 were "on [Masimo's] stuff," according to Masimo CEO Joe Kiani.

Prior to when Lamego worked at the company, Apple's internal emails reflected trouble with the development on the Apple Watch. "Frankly, I think this is a mess," wrote now-retired Apple executive Bob Mansfield about early work on the Apple Watch sensor, adding that the sensor would "fail" on its "current path." Apple vice president of corporate development Adrian Perica also expressed concerns about the device, writing that the Apple Watch was "already way behind" other wearables on the market.

Masimo presented emails between Mansfield and Perica, who discussed acquiring Masimo during the time period when the Apple Watch was in development. Apple decided against it because the company's large size isn't Apple's "style" and wouldn't "accelerate [Apple's] roadmaps and products," according to Perica. Perica at one point referred to extending an "olive branch" to Masimo by offering tickets to an Apple event, which Masimo lawyers cited as evidence that Apple knew it had wronged Masimo in some way.

Apple claims that Masimo is targeting it with the lawsuit because Masimo saw the success of the Apple Watch and decided to make its own smart watch. Masimo has largely been focused on large medical devices created for hospitals rather than wearables. In a trial brief, Apple said that what Masimo claims are "trade secrets" are ideas "long known and used by multiple companies."

The eight-person jury hearing the case is expected to begin deliberations as soon as next week as Apple and Masimo finish their legal arguments. The U.S. International Trade Commission has already ruled that Apple infringed on Masimo patents with the Apple Watch, a ruling that Apple is fighting.

Popular Stories

iOS 26

15 New Things Your iPhone Can Do in iOS 26.2

Friday December 5, 2025 9:40 am PST by
Apple is about to release iOS 26.2, the second major point update for iPhones since iOS 26 was rolled out in September, and there are at least 15 notable changes and improvements worth checking out. We've rounded them up below. Apple is expected to roll out iOS 26.2 to compatible devices sometime between December 8 and December 16. When the update drops, you can check Apple's servers for the ...
Intel Inside iPhone Feature

Apple's Return to Intel Rumored to Extend to iPhone

Friday December 5, 2025 10:08 am PST by
Intel is expected to begin supplying some Mac and iPad chips in a few years, and the latest rumor claims the partnership might extend to the iPhone. In a research note with investment firm GF Securities this week, obtained by MacRumors, analyst Jeff Pu said he and his colleagues "now expect" Intel to reach a supply deal with Apple for at least some non-pro iPhone chips starting in 2028....
ive and altman

Jony Ive's OpenAI Device Barred From Using 'io' Name

Friday December 5, 2025 6:22 am PST by
A U.S. appeals court has upheld a temporary restraining order that prevents OpenAI and Jony Ive's new hardware venture from using the name "io" for products similar to those planned by AI audio startup iyO, Bloomberg Law reports. iyO sued OpenAI earlier this year after the latter announced its partnership with Ive's new firm, arguing that OpenAI's planned "io" branding was too close to its...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Monday December 1, 2025 2:40 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
Photos App Icon Liquid Glass

John Gruber Shares Scathing Commentary About Apple's Departing Software Design Chief

Thursday December 4, 2025 9:30 am PST by
In a statement shared with Bloomberg on Wednesday, Apple confirmed that its software design chief Alan Dye will be leaving. Apple said Dye will be succeeded by Stephen Lemay, who has been a software designer at the company since 1999. Meta CEO Mark Zuckerberg announced that Dye will lead a new creative studio within the company's AR/VR division Reality Labs. On his blog Daring Fireball,...
maxresdefault

iPhone Fold: Launch, Pricing, and What to Expect From Apple's Foldable

Monday December 1, 2025 3:00 am PST by
Apple is expected to launch a new foldable iPhone next year, based on multiple rumors and credible sources. The long-awaited device has been rumored for years now, but signs increasingly suggest that 2026 could indeed be the year that Apple releases its first foldable device. Subscribe to the MacRumors YouTube channel for more videos. Below, we've collated an updated set of key details that ...
Apple John Ternus 2019

Will John Ternus Really Be Apple's Next CEO?

Friday December 5, 2025 9:01 am PST by
There is uncertainty about Apple's head of hardware engineering John Ternus succeeding Tim Cook as CEO, The Information reports. Some former Apple executives apparently hope that a new "dark-horse" candidate will emerge. Ternus is considered to be the most likely candidate to succeed Cook as CEO. The report notes that he is more likely to become CEO than software head chief Craig Federighi, ...
ios 18 to ios 26 upgrade

Apple Pushes iPhone Users Still on iOS 18 to Upgrade to iOS 26

Tuesday December 2, 2025 11:09 am PST by
Apple is encouraging iPhone users who are still running iOS 18 to upgrade to iOS 26 by making the iOS 26 software upgrade option more prominent. Since iOS 26 launched in September, it has been displayed as an optional upgrade at the bottom of the Software Update interface in the Settings app. iOS 18 has been the default operating system option, and users running iOS 18 have seen iOS 18...
iOS 26

Apple Seeds iOS 26.2 and iPadOS 26.2 Release Candidates to Developers and Public Beta Testers

Wednesday December 3, 2025 10:33 am PST by
Apple today seeded the release candidate versions of upcoming iOS 26.2 and iPadOS 26.2 updates to developers and public beta testers, with the software coming two weeks after Apple seeded the third betas. The release candidates represent the final versions of iOS 26.2 and iPadOS 26.2 that will be provided to the public if no further bugs are found during this final week of testing....

Top Rated Comments

JitteryJimmy Avatar
35 months ago
"Poaching" is a sad term that implies that a hiring company did something wrong or distasteful. "Poaching" is just the hiring an employee. It is not illegal or immoral to hire employees from a competitor or from anywhere else. Changing jobs is how workers can make more money.
Score: 23 Votes (Like | Disagree)
macduke Avatar
35 months ago
I hate it when companies try to own their employees and think of them as being "poached" which seriously limits our ability to go elsewhere and further advance our careers. We are not pawns, we are not toys that you collect.

My company tried to get me to sign an NDA after I had worked there a while. It included language that I couldn't leave to work for competitors or otherwise companies that worked with our clients. I told them no, lol. Fortunately I'm in a position to have leverage and seniority, unlike most workers. We need a workers bill of rights to make this garbage illegal.
Score: 15 Votes (Like | Disagree)
roar08 Avatar
35 months ago
Oh no, someone hired your employees away. The *general* corollary of this of course is the obvious: you failed to retain your employees. And of course, now comes the WE MAD.
Score: 11 Votes (Like | Disagree)
frenchcamp49er Avatar
35 months ago
Companies "poach" employees all the time. How many Apple employees have been hired by other companies.
Score: 9 Votes (Like | Disagree)
Baritone_Guy Avatar
35 months ago
It’s amazing just how much he was able to do from scratch in 6 months.

/s
Score: 7 Votes (Like | Disagree)
Analog Kid Avatar
35 months ago
This will be interesting to watch. As written here it feels like this person carried out Masimos IP and patented it for Apple but there are two obvious questions: did he carry out physical documents or just the understanding of how to do something, and if it was precious and patentable why didn't Masimo do that?

Trade secrets are generally things that aren't patentable or that you wouldn't want to disclose though a patent because it would teach your competition. Teaching the competition would be bad if the patent is easily circumvented. If it's easily circumvented then the patent isn't anything to get upset about. If Masimo has already done what Apple has patented then it's prior art and the patent is invalid.

Another possibility is that this employee thought their ideas were worth pursuing, Masimo didn't, Apple did, Apple made bank on those ideas, now Masimo is regretting their decision to not move forward with it. Apple patents stuff all the time they don't intend to pursue though, so that would suggest Masimo saw so little value in the ideas that they didn't want to fund the patents. If they held that little value for Masimo, then are they really trade secrets?
Score: 5 Votes (Like | Disagree)