That would be the obvious solution, but it’s not surprising they couldn’t agree on a price when they operate in very different industries. Masimo makes medical devices, ones whose prices are probably both high and skewed by insurance. Apple is a consumer devices company and may not be able to justify a high royalty price and still meet certain consumer price points. Another possibility is that Apple’s watches may be an alternative to Masimo’s expensive, high-margin devices, so a licensing deal could destroy Masimo’s entire business in the long run. So, coming to an agreement on price may have been impossible.