Perhaps the public should buy the Masimo watch if they appreciate the specific advantages of the specific pulse oximetry technology at question here. While that may satisfy a small percentage of customers whose primary motive is that specific feature, the majority of people I know wouldn't consider that a valid option, since they like the integration with the "apple ecosystem", or similar reasons.
Would it be possible to separate end products from component technology in a way that prevents this? Perhaps by tracking an accounting line for patents internally, then pushing for legislation which requires patent-cost -> end product cost transparency?