In a significant legal development, Apple has secured a temporary reprieve from the U.S. International Trade Commission’s (ITC) import ban on its flagship smartwatches. The ban, imposed due to an ongoing patent dispute with California-based Masimo over medical monitoring technology, has now been temporarily halted by the U.S. Court of Appeals for the Federal Circuit.
This court decision allows Apple to resume sales of its smartwatches, providing a window to address the patent dispute. The final resolution of this dispute could have substantial financial implications for both Apple and Masimo. Analysts, however, emphasize that the negative publicity surrounding the lawsuit might outweigh any potential financial impact on Apple.
Following the court’s decision, Apple expressed its enthusiasm for the return of the full Apple Watch lineup to customers in time for the new year. The affected models, including the Apple Watch Series 9 and Apple Watch Ultra 2 with blood oxygen features, are set to be available for purchase again in the United States.
The ITC had previously banned the import and sale of Apple Watches featuring blood-oxygen reading technology. The dispute escalated as Masimo accused Apple of employee poaching and stealing pulse oximetry technology for its smartwatches. Apple, in turn, countered with claims of competitive maneuvering by Masimo.
While Apple reassures customers of the Apple Watch’s availability, industry analysts suggest that Apple’s focus is likely on the broader implications for its future health-wearable products. The U.S. appeals court has temporarily halted the ban and is set to consider Apple’s motion for a longer-term pause. The court has given the ITC until January 10 to respond to Apple’s request.
Despite the Biden administration’s decision not to veto the ban, Apple remains optimistic about pursuing legal and technical solutions. Apple had earlier suspended sales of the affected smartwatches on its website and in retail locations following the ITC’s decision. Notably, the ban did not impact the Apple Watch SE or previously sold watches.
A jury trial held in May on Masimo’s allegations against Apple concluded in a mistrial. Apple’s wearables, home, and accessory business, which includes the Apple Watch, generated $8.28 billion in revenue during the third quarter of 2023, according to the company’s report.
This legal victory allows Apple to navigate the patent dispute while maintaining a positive outlook for its smartwatch lineup in the competitive market.
