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Philips and Masimo drop legal disputes and enter new business agreement

by Lauren Dubinsky, Senior Reporter | November 08, 2016
Business Affairs Medical Devices
Masimo's rainbow SET technology
Royal Philips and Masimo have decided to end their legal disputes and sign a multi-year business partnership agreement. The deal combines Masimo’s noninvasive sensor and signal processing technologies and Philips integrated patient monitoring and therapy solutions.

The companies will work together on joint marketing and sales programs in North America and certain markets in Asia and Europe. In the future, Philips will integrate Masimo SedLine brain function monitoring, O3 region oximetry, and Nomoline capnography technologies into its IntelliVue monitors.

In February, 2009, Masimo filed a patent infringement action in Delaware against Philips for its Measure-through Motion and Low Perfusion pulse oximetry technology. After a 10-day trial, the jury reached a verdict on October 1, 2014, in favor of Masimo, and Philips was ordered to pay $467 million in damages.
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As part of this new partnership, Philips is released from paying the jury verdict. Instead, Philips has agreed to make a $300 million cash payment to Masimo in the fourth quarter of 2016 and to make certain marketing and product integration commitments over the next few years.

“I am very satisfied that we have reached an agreement that is beneficial for both companies, and that we have ended our legal disputes,” Frans van Houten, CEO of Royal Philips, said in a statement.

Sensor and signal processing technologies are an important part of patient monitoring. In April, the companies announced that Masimo’s rainbow SET technology would be integrated with a Philips monitor, allowing for continuous monitoring of hemoglobin (SpHb) so clinicians can see real-time changes between invasive blood samplings.

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