Apple’s Apple Watch Compensation Bill Reaches $818 Million

Apple faces another financial obligation in a patent lawsuit over the heart rate measurement technology used in its smartwatches. An additional $184 million in interest has been added to the $634 million in damages the company was previously ordered to pay. As a result, the total amount Apple must pay Masimo has risen to $818 million.

The court dispute centers on patents owned by Masimo relating to heart rate monitoring technologies used in Apple Watch models. During the trial held last November, the jury concluded that Apple had infringed the patents in question and awarded Masimo $634 million in damages.

However, the legal proceedings did not end there. The issue of adding interest to the damages was also considered separately. Apple opposed the request, arguing that the additional interest payment would give Masimo an unjustified financial advantage.

Judge James Selna, who presided over the case, rejected Apple’s objection. Citing previous rulings by the US Supreme Court, the judge said the financial loss resulting from payments that the patent holder did not receive on time should be compensated by awarding interest.

However, the court also rejected the interest rate requested by Masimo. The company sought an annual rate of 7 percent on the damages. In that case, Apple would have had to pay approximately an additional $243 million.

The judge instead ruled that the interest calculation should be based on Masimo’s own borrowing costs. Interest was calculated using annual compounding from the date the patent infringement began.

As a result, $184 million in interest was added to the initial $634 million award, bringing the total amount Apple must pay Masimo to $818 million.