Masimo, a company embroiled in a significant legal battle with Apple over patent infringement, is now making headlines for another reason. The company has decided to sell its consumer audio division, Sound United, to Harman, a subsidiary of Samsung, in a deal valued at $350 million (around ₹2,960.55 crores). Harman, known for its array of audio brands such as JBL, Harman Kardon, AKG, Mark Levinson, Arcam, and Revel, will be acquiring Sound United, which owns prominent brands including Bowers & Wilkins, Denon, and Marantz. The deal, expected to close by the end of 2025, is contingent on securing necessary regulatory approvals.
This acquisition will significantly bolster Harman's presence in the audio market across various categories, including home audio, headphones, hi-fi components, and car audio. By combining these renowned brands, Harman aims to expand its product offerings, enhance its value proposition, and provide consumers with even more choices in the audio technology space. Dave Rogers, President of Harman's Lifestyle division, emphasized that the merger would leverage the shared legacy of both companies in delivering innovative audio solutions.
In the midst of this transition, Masimo is still dealing with its ongoing legal dispute with Apple. The lawsuit revolves around allegations of patent infringement, primarily related to pulse oximetry technology used in Apple Watches. Masimo accuses Apple of poaching employees and stealing its patented technology, which was then allegedly incorporated into Apple's own devices. This legal conflict has had significant consequences for Apple, forcing the company to temporarily halt the sale of certain Apple Watch models in the United States, particularly those featuring blood oxygen monitoring, such as the Apple Watch Series 9 and Ultra 2.
The International Trade Commission (ITC) supported Masimo’s claims, leading to a ban on the sale of these Apple Watch models in the US. In response, Apple made adjustments by disabling the pulse oximetry feature in the affected devices, allowing sales to resume, though the ban remains in place for now. This issue is still far from resolved, and the dispute could continue to affect Apple Watch sales in the US until either a licensing agreement is reached between the companies or the disputed patents expire in 2028. Alternatively, the case could change depending on the outcome of the ongoing legal battle.
Despite the patent dispute, Masimo has received a payout of $250 (the statutory minimum for infringement cases in the US), a figure that underscores the complexity of the legal proceedings. Katie Szyman, Masimo's CEO, expressed that the sale of its consumer audio business to Harman aligns with the company's broader strategy to focus on addressing unmet clinical needs and improving operational efficiency. Szyman believes that Sound United and its team will be in capable hands under Harman's leadership, ensuring continued growth and success in the consumer audio market.
This move signifies a shift for Masimo, marking the conclusion of its involvement in the consumer audio space, while it continues to navigate the complexities of its legal situation with Apple. The sale to Harman will provide the company with an opportunity to concentrate more on its core areas, particularly its medical technologies, while Harman stands to gain a stronger foothold in the competitive audio industry.
