Import Ban on Apple Watch Actioned as the Company Files Appeal

Today, Apple has filed an appeal to stop the ban on imports of its Apple Watches. The ban was the outcome of a complaint made by Masimo, a medical device maker, following U.S. President Joe Biden’s administration declining to veto a government tribunal, reports Reuters.

The U.S. International Trade Commission (ITC) ruled in October that Apple has committed a patent breach by incorporating into its watches the pulse oximeter made by Masimo, which uses light-based tech to read blood-oxygen levels, according to CNN.

The ITC’s order went into effect today, which will halt imports and sales of Apple Watches that use patent-infringing technology for reading blood-oxygen levels. Apple has included the pulse oximeter feature in its smartwatches since 2020 with its Series 6 model.

To buy some time in order to make relevant changes, Apple also filed an appeal with the U.S. Court of Appeals asking the Federal Circuit to pause the ban — at least until U.S. Customs and Border Protection makes a decision on whether their redesigned versions are clear from patent violation. The customs office is set to make a decision on Jan. 12, according to Apple.

However, U.S. Trade Representative Katherine Tai made a final decision on Dec. 26, and after carefully considering the case, the ITC’s decision was not to undo the ban.

In a statement in response to the outcome, Apple said, “We strongly disagree with the USITC decision and resulting exclusion order, and are taking all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the U.S. as soon as possible.”

Masimo accuses Apple of hiring its company’s employees, all while reaping the rewards from stealing its pulse oximetry technology and integrating it into the highly sought-after Apple Watch. In response to the ITC’s decision, a company spokesperson called it “a win for the integrity of the U.S. patent system, and ultimately American consumers.”

Providing a bit of a forecast, an analyst at Stifel wrote in a note that its “litigation expert predicted a potential Apple appeal would extend the ‘final’ ITC case verdict roughly another year.”

Since last week, Apple has paused its sales of its Series 9 and Ultra 2 smartwatches in the U.S. However, the watches are currently still available from other retailers such as Amazon, Best Buy, and Walmart.

Nicholas Matich, an intellectual property attorney with law firm McKool Smith, said that while other companies typically settle disputes like this, Apple might think it can work its way around the patents quickly or get rid of the infringing feature. “There’s nothing legally extraordinary about the ITC issuing an exclusion order,” Matich explained. “What’s extraordinary here is that the product at issue is high profile and that Apple has chosen to live with the ITC order rather than settle.”

Not all Apple Watches are affected by this ban. Still in the mix of watches free to trade on the market is the Apple Watch SE, a slightly cheaper model. Models sold prior to this ban will also not be impacted.

This is not the first time Apple and Masimo have been in the battling ring over patient breaches. Last year, Apple sued Masimo for patent infringement in federal court in Delaware and has referred to Masimo’s legal actions as a “maneuver to clear a path” for its own competing smartwatch.