Oura vs Circular Ring | Oura effectively wins

Oura was the first mainstream smart ring and sold its one-millionth ring in 2022. Backing up its large sales volume is a bursting patent library.

In May 2022, we part-joked that Oura seemed to have patented the Smart Ring as it embarked on a legal case for patent infringement against Circular.XYZ’s first ring. A similar case was filed against Ultrahuman in November 2023.

Do you detect a trend there?

A: Not so! Before Samsung announced its Summer 2024 Ring it pre-emptively brought a case against Oura, effectively allowing Samsung to launch its ring smoothly and putting the onus on Oura to disprove Samsung’s case.

Latest

The latest news is perhaps unsurprising in hindsight. Circular and Oura have settled their differences with the former agreeing to pay Oura a licence fee to use some of its patents. Here are excerpts from the official comments from both companies on 25th June 2024:

The licensing agreement with Circular validates the strength of ŌURA’s patents and is only possible because of the significant investment ŌURA has made in research and development. This agreement is a meaningful outcome for our investors, as well as our scientists, developers, and product teams, and all of those at ŌURA who innovate every day to…[T. Hale, CEO, Oura]

and from Circular

We recognize the strength and utility of the fundamental patents that have been awarded to ŌURA, and this agreement rightfully compensates them for their pioneering innovation in smart rings. [A. Kosman, CEO, Circular]

Next, I recently finished a review of the Ultrahuman Ring Air. I quietly noted to myself at the time that Ultrahuman already seemed to have changed some of the aesthetics of its app, and it was copycat aesthetics which appeared to form part of the complaint against the company by Oura. Perhaps Ultrahuman is signalling it’s going to back down.

Takeout

Circular either didn’t have the financial muscle to pursue an extended legal battle with Oura or it knew it was infringing Oura’s patents and would lose. Coming to a deal was probably the sensible thing to do.

It is noteworthy that Kosman agreed to officially use the phrase “fundamental patents“, which refers to core technologies and the building blocks for other features. Maybe Oura really has patented the smart ring.

It might take many months for us to understand the strength of Ultrahuman’s hand but we already know that Samsung will be up for a fight. Will Oura take Samsung on? (A: Probably!)

Q: Who could buy Oura?

A: Oura last attracted a multi-billion dollar valuation, part of that valuation includes its patent library. At that valuation, only the likes of Google and Apple are possible acquirers.

Oura & Circular Pricing

If you are thinking of jumping into the smart ring game, these are the best ones currently available. Oura is the best overall but the most expensive once its subscription is factored in. Oura appears to have a new Gen 4 Ring coming out later in 2024.

• RingConn Gen 2 (Kickstart intro price) – $209
• Oura Ring – $299 plus subscription
• Ultrahuman Ring Air – $350
• Amazfit Helio ring – $299
• Samsung Ring – $399
• Circular Ring €204 without haptics (vibrations), €294 with haptics (vibrations)