Apple appeals an import ban on watches amid a patent dispute
27 Dec 2023
In an attempt to overturn a ban on the import of its watches, Apple has lodged an appeal following a complaint from medical monitoring technology company Masimo. The ban, instigated by the U.S. International Trade Commission (ITC), stems from allegations that Apple incorporated Masimo’s pulse oximetry technology into its Apple watch.
The appeal, filed on Tuesday, 26 December 2023, seeks to halt the ban through an emergency request to the U.S. Court of Appeals for the Federal Circuit. Apple urges the court to pause the ban at least until U.S. Customs and Border Protection evaluates redesigned versions of its watches for potential patent infringement. The customs office is expected to make its decision on 12 January 2024.
Masimo accuses Apple of not only incorporating its technology but also poaching employees. The ITC’s order, finalized on 26 December 2023, prohibits the import and sale of Apple watches featuring blood-oxygen level reading technology. Apple, in response, emphasizes its disagreement with the decision and is taking all necessary measures to address the exclusion order promptly.
U.S. Trade Representative Katherine Tai opted not to overturn the ban after thorough consultations. Apple’s appeal to the Federal Circuit reflects its determination to challenge the ITC’s decision. The company expressed strong disagreement with the U.S. ITC decision and the resulting exclusion order. They mentioned that they are taking all necessary measures to promptly return the Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the U.S.
Despite the ITC’s rejection of Apple’s request to pause the ban during the appeals process, the tech giant persists in its efforts. Analysts predict that an Apple appeal could extend the final ITC case verdict by approximately another year, as observed in similar legal battles.
Apple has temporarily halted sales of its Series 9 and Ultra 2 smartwatches in the U.S., though the products remain available through various retailers. The ban does not impact the less-expensive Apple Watch SE, which continues to be sold. Notably, previously sold watches are unaffected by the ban.
This legal clash isn’t Apple’s first with Masimo. While a jury trial in California federal court ended in a mistrial in May 2023, Apple has also countersued Masimo for patent infringement in federal court in Delaware. Apple characterized Masimo’s legal actions as a strategic move to pave the way for its own competing smartwatch.
Observers note that it’s unusual for Apple to live with an ITC order rather than settle, indicating the high-profile nature of the case. The ongoing dispute may extend the final resolution, impacting Apple’s revenue stream from its wearables, home, and accessory business, which reported $8.28 billion in revenue during the third quarter of 2023.
