US commission halts smartwatch imports amid Masimo dispute.
On Wednesday, a US appeals court halted a government import ban on specific Apple smartwatches amid a patent dispute with medical-tech firm Masimo, marking a win for Apple. The tech company urgently appealed to the court after the US International Trade Commission’s decision alleging patent infringement. Neither Apple nor Masimo representatives responded to comment requests right away.
The appeals court issued a brief four-paragraph ruling, temporarily stopping the ban as it reviews Apple’s request for a more extended pause in the appeals process. The court set a deadline of January 10 for the ITC to address Apple’s appeal.
On Tuesday, the Biden administration chose not to override the ban, enabling its enforcement. Subsequently, Apple sought a temporary halt to the ban later that day.
Masimo alleged that Apple recruited its employees, appropriated its pulse oximetry tech, and integrated it into Apple Watches. Consequently, the ITC prohibited the import and sale of Apple Watches equipped with blood-oxygen level reading technology. Apple introduced a pulse oximeter in its smartwatches beginning with the Series 6 model in 2020.
Sales of Apple’s Series 9 and Ultra 2 smartwatches have been halted in the US by Apple, yet these watches continue to be accessible through various retailers such as Amazon, Best Buy, Costco, and Walmart.
The ban excludes the Apple Watch SE, a more affordable version lacking a pulse oximeter. Previously sold watches are also exempt from this restriction.
A California federal court declared a mistrial in May for Masimo’s allegations against Apple, which await resolution. In a separate action, Apple countersued Masimo for patent infringement in a Delaware federal court, accusing Masimo’s legal pursuits as a tactic to pave the way for its competing smartwatch.
According to a company report, Apple’s wearables, home, and accessory division, including the Apple Watch, AirPods, and related products, generated $8.28 billion in revenue during the third quarter of 2023.
Masimo’s stocks plummeted nearly 5% post the ruling, while Apple’s shares remained nearly unchanged.