The Smart Ring Patent Wars: Oura and Circular Settle, But The Battle Continues
The world of wearable technology is undergoing a fierce competition, and the battleground is not just about features and aesthetics but also about the very intellectual property that fuels innovation. Smart rings, with their sleek design and ability to track health metrics and even unlock doors, are a burgeoning category attracting the attention of both established giants and agile startups. One recent case highlights the intensity of this competition: the patent dispute between Oura and Circular, two leading smart ring manufacturers.
Oura, a well-established company known for its flagship ring that tracks sleep, heart rate, and temperature, has aggressively defended its intellectual property. In March 2023, Oura CEO Tom Hale publicly announced that the company had filed a complaint with the International Trade Commission (ITC), alleging that Circular, along with fellow smart ring makers Ultrahuman and RingConn, had infringed multiple patents with their products.
"Unfortunately, when we see companies take shortcuts that imitate and ride the coattails of our innovation, we have no choice but to take action,” Hale wrote. “We’re clear on where we stand when it comes to patent infringement: we’ve spent over a decade investing countless hours of design, scientific research, and engineering into our hardware, software, and algorithms to create Oura Ring and the Oura Membership experience, and we’ll always protect those efforts.”
The complaints against Circular specifically focused on the ring’s form factor (its physical design) and the Readiness Score, a key feature touted by Oura that utilizes physiological data to provide insights into the user’s mental and physical stress levels.
Now, in a surprising turn of events, Oura and Circular have announced a settlement agreement. This agreement involves Circular obtaining a multi-year license for Oura’s intellectual property for devices sold in the U.S. The financial details of this agreement have been kept confidential, adding another layer of intrigue to the tale.
Circular CEO Amaury Kosman, while acknowledging Oura’s contributions to the smart ring market, stated: "We recognize the strength and utility of the fundamental patents that have been awarded to Oura, and this agreement rightfully compensates them for their pioneering innovation in smart rings."
This statement, while diplomatic, underlines the strategic importance of patents in the tech industry. Patents act as shields, protecting intellectual property and providing a strategic bargaining chip in negotiations. By obtaining a license, Circular avoids a drawn-out legal battle and gains access to Oura’s patented technologies, potentially accelerating its own development and market entry.
However, despite this settlement, the patent dispute isn’t over. Oura’s claims against RingConn and Ultrahuman remain unresolved. The company also has not filed any similar complaints outside the U.S. This suggests that the battle for dominance in the smart ring market is far from settled and is likely to continue on multiple fronts.
This situation reflects a wider trend in the tech industry, where intellectual property is often fiercely defended and litigated. Large companies like Apple and Google frequently engage in licensing agreements, recognizing that securing a patent is one thing, but enforcing it through lengthy legal battles is another.
The Apple Watch, for instance, faced a similar challenge in late 2023 when med tech company Masimo filed complaints over alleged infringement of its pulse oximetry related technology. This resulted in the halting of Apple Watch Series 9 sales, demonstrating the potential impact of patent disputes on product availability and market share.
The current dispute between Oura and Circular underscores the critical role patents play in the development and commercialization of technological advancements. It also highlights the increasing complexities of the wearable technology market, where companies are navigating a challenging landscape of competition, innovation, and legal scrutiny. The outcome of these patent battles will likely shape the trajectory of this market for years to come, impacting both the availability and features of smart rings and other wearable devices consumers can choose from.
Here are some key takeaways from this ongoing saga:
- The smart ring market is a rapidly growing sector with intense competition between established companies and new entrants.
- Patents are a powerful tool for companies to protect their intellectual property and gain a strategic advantage.
- Patent disputes can be costly and protracted, leading to delays in product launches, market disruptions, and significant financial implications.
- Licensing agreements can offer a more pragmatic alternative to litigation, allowing companies to access valuable technologies while avoiding costly legal battles.
- The outcome of the remaining patent disputes between Oura and its competitors will have important ramifications for the future of the smart ring market.
The story of Oura, Circular, and the smart ring patent dispute is far from over. As the landscape of wearable technology continues to evolve, it is likely that similar battles will unfold, shaping the future of the industry and influencing the choices available to consumers.
