Apple (AAPL, Financials), the consumer technology company behind the iPhone and Apple Watch, failed to overturn a $634 million jury verdict in a patent dispute with medical technology company Masimo.
A federal judge in California rejected Apple's request to set aside the award, which centered on technology used to measure blood oxygen levels in certain Apple Watch models.
The court also found that Apple misappropriated two of 14 Masimo trade secrets. However, the judge declined to issue an injunction and ruled that Masimo could not seek monetary damages on that part of the case.
Masimo had sought as much as $3.1 billion tied to the trade-secret claims. The company, now part of Danaher, has filed an appeal over that portion of the ruling. Apple has argued that its engineers developed the health-monitoring features independently.
The decision keeps pressure on Apple as it continues to defend the technology used in one of its most important wearable products.
Investors will now watch the appeal process and any further impact on Apple Watch features, sales or licensing costs.