Court Revives Tyco Suit Against Masimo

A U.S. appeals court revived a lawsuit filed by Tyco International Ltd.’s Nellcor unit against Masimo Corp. over a patent for machines that measure the oxygen content in blood.

The Court of Appeals for the Federal Circuit in Washington said a judge in Los Angeles who ruled against Nellcor had incorrectly interpreted Nellcor’s patent.

The lawsuit is one of several between the two companies, and the ruling gives Tyco a chance to try to win damages from closely held Masimo. A jury in March ordered Tyco to pay $420 million to Masimo for engaging in anti-competitive behavior, and a different jury last year told Tyco to pay more than $164 million for infringing Masimo patents.