Apple Challenges Watch Ban Amid Patent Battle with Masimo

In response to a lawsuit made by medical monitoring technology business Masimo, Apple has chosen to fight a recent decision to restrict the importation of its watches. The International Trade Commission (ITC) of the United States has imposed a ban that specifically targets Apple Watches with blood-oxygen monitoring technology. Masimo claims that Apple engaged in employee poaching, misappropriated its pulse oximetry technology, and incorporated it into the popular Apple Watch.

Despite Apple’s pleas, President Joe Biden’s administration chose not to interfere in the ITC’s judgment, which became final on December 26. As a result, Apple has begun the appeals process, filing an appeal with the United States Court of Appeals for the Federal Circuit in Washington. Simultaneously, the IT giant filed an emergency motion with the same court, requesting that the import ban be revoked.

Apple’s emergency plea requests that the ban be lifted until US Customs and Border Protection completes its review of revised watch models for potential patent infringement. The company also requests that the ban cease while the court considers Apple’s appeal. The customs office is anticipated to make a judgment on the redesigned watches by January 12.

Masimo claims that Apple’s alleged acts violate its patents and jeopardize the integrity of the US patent system. The ITC ruling bars not just the importation but also the sale of Apple Watches featuring the questioned technology. Apple, on the other hand, is committed to fighting the ban and has expressed strong disagreement with the decision. Given the high reputation of the product involved, Apple’s choice to pursue the legal battle rather than settle with Masimo seems unusual.

According to legal experts, Apple may assume it can quickly design around the disputed patents or remove the potentially infringing feature from its watches. Apple was compelled to cease sales of its Series 9 and Ultra 2 smartwatches in the United States because of the ITC’s exclusion ruling. Nonetheless, the prohibited watches may still be purchased from other stores such as Amazon, Best Buy, and Walmart.

It’s worth noting that the prohibition does not apply to the Apple Watch SE, a lower-cost device that will continue to be sold. Furthermore, the import prohibition has no effect on previously-sold watches. Stifel analysts predict that an Apple appeal could prolong the final verdict in the ITC case by approximately another year.

This is not Apple’s first court battle; in 2013, President Barack Obama’s administration overturned an import ban on Apple’s iPhones and iPads after a patent dispute with Samsung. Despite the difficulties, Apple’s wearables, home, and accessories division, which includes the Apple Watch, continues to be a big revenue generator, garnering $8.28 billion in the third quarter of 2023, according to the company’s report.