Masimo Corp. will receive $300 million from Koninklijke Philips NV to end their patent disputes.
The money is part of a settlement of a $467 million jury verdict in October 2014 that found Philips infringed Masimo patents related to pulse oximetry, which noninvasively measures oxygen saturation in the blood.
Masimo sued Philips in February 2009.
The money is to be paid within five business days of the settlement, which was finalized on Nov. 5. Philips also agreed to put Masimo technology in its products.
Masimo plans to use after-tax proceeds of the settlement to repay debt.
Philips is based in Amsterdam, Netherlands. Its U.S. operations are in Andover, Mass. It traded recently at a $28 billion market cap.
Masimo is in Irvine and traded recently at a $3 billion market cap. It’s set to conclude a long-running patent license in 2018 that stems from disputes with units of Medtronic Plc and which will have brought the OC device maker an estimated $770 million over about 10 years.
Masimo’s law firm in both of the patent cases is Knobbe, Martens, Olson & Bear LLP in Irvine.
The recent settlement with Philips was described as a multiyear agreement.
—Paul Hughes
