It sounded like a dream partnership when Apple Inc. reached out to Joe Kiani, the founder of a company that makes blood-oxygen measurement devices. He figured his technology was a perfect fit for the Apple Watch.  

Soon after meeting him, Apple began hiring employees from his company, Masimo Corp., including engineers and its chief medical officer. Apple offered to double their salaries, Mr. Kiani said. In 2019, Apple published patents under the name of a former Masimo engineer for sensors similar to Masimo’s, documents show. The following year, Apple launched a watch that could measure blood oxygen levels.

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