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Court Upholds $467 Million Verdict for Knobbe Martens Client Masimo

| Joseph R. ReBrian Horne

Knobbe Martens is pleased to announce that, on May 18, the Delaware federal court upheld a $467 million jury verdict for the firm’s longstanding client Masimo Corp. against Philips Electronics North America Corp and Philips Medizin Systeme Boblingen GMBH. That verdict was the largest IP verdict in the US in 2014.

In so doing, the District Court rejected Philips’ numerous invalidity challenges, denied Philips motion for a new trial, and denied Philips motion to lower the damages award to as low as $23 million. In a separate order, the District Court determined that Masimo’s lawyers did not commit inequitable conduct. The court found that all of the Knobbe lawyers who testified at trial were “credible on all points on which they testified,” and that these attorneys had set up a system of disclosure aimed at providing the Patent Office with all relevant information.

In October, the jury found Philips liable for infringing two Masimo patents and rejected various arguments that Masimo’s patents were invalid. The jury also awarded Masimo $467 million for the infringement of the two patents. In addition, the jury rejected all claims by Philips that Masimo infringed a Philips patent for which Philips was seeking $169 million.

Masimo’s technology has revolutionized pulse oximetry, dramatically improving patient care worldwide, while also decreasing the cost of care. Knobbe Martens has been representing Masimo for over 20 years, and in 2004 obtained a $134 million verdict against its competitor Nellcor. The current infringement case between Masimo and Philips remains ongoing, with more trials anticipated regarding other patents Masimo contends Philips has infringed.

About Knobbe Martens
With over 275 lawyers and scientists nationwide, Knobbe Martens Olson & Bear LLP dedicates its practice to all aspects of intellectual property law, including post-grant review proceedings before the United States Patent and Trademark Office. Consistently ranked among the top intellectual property firms worldwide, Knobbe Martens serves a diverse group of clients from multinational corporations to emerging businesses of all stages. Headquartered in Orange County, California, Knobbe Martens also has offices in San Diego, Los Angeles, San Francisco, Silicon Valley, Seattle and Washington, D.C. More information about the firm can be found at www.knobbe.com.

About Masimo
Masimo is a global medical technology company that develops and manufactures innovative noninvasive patient monitoring technologies, including medical devices and a wide array of sensors. A key medical technology innovator, Masimo is responsible for the invention of award-winning noninvasive technologies that are revolutionizing patient monitoring, including Masimo SET® pulse oximetry, Masimo Rainbow® Pulse CO-Oximetry and new Masimo noninvasive and continuous total hemoglobin (SpHb) monitoring technology. The recent introduction of the first-and-only FDA-cleared technology that noninvasively and continuously measures total hemoglobin without a painful needle stick and invasive blood draw is expected to open new markets and significantly expand the company’s growth opportunities.

Contact: Nicholas Gaffney 415-732-7801