US appeals court grants Apple Watch ban pause, a win

Following a dispute with medical-tech firm Masimo, a US government commission prohibited the import and sale of certain smartwatches

On Wednesday, Apple secured a win as a US appeals court temporarily halted a government commission’s import ban on certain Apple smartwatches. This came after a patent dispute with medical-tech firm Masimo. The tech giant urgently requested the US Court of Appeals for the Federal Circuit to pause the order following its appeal against the US International Trade Commission’s (ITC) ruling of patent infringement. No immediate comments were received from representatives of Apple and Masimo.

Issuing a concise four-paragraph decision, the appeals court announced a temporary suspension of the ban as it evaluates Apple’s plea for an extended pause throughout the appeals process. The court stipulated that the International Trade Commission (ITC) must provide a response to Apple’s request by January 10th.

On Tuesday, the Biden administration opted not to intervene in the enforcement of the ban, allowing it to proceed. Later that day, Apple requested a temporary halt to the ban.

Masimo alleges that Apple poached its employees, misappropriated its pulse oximetry technology, and integrated it into Apple Watches. The International Trade Commission (ITC) implemented restrictions on the import and sale of Apple Watches equipped with blood-oxygen level reading technology. Apple introduced the pulse oximeter feature in its smartwatches starting with the Series 6 model in 2020.

In response, Apple has temporarily suspended the sales of its Series 9 and Ultra 2 smartwatches in the US, although these watches remain accessible through other retailers such as Amazon, Best Buy, Costco, and Walmart.

The ban does not impact the Apple Watch SE, a more affordable model without a pulse oximeter. Previously sold watches are also exempt from the ban.

In a California federal court, a jury trial on Masimo’s allegations against Apple concluded with a mistrial in May. Apple, in turn, has filed a separate lawsuit against Masimo for patent infringement in federal court in Delaware, characterizing Masimo’s legal actions as a strategic move to pave the way for its own competing smartwatch.

According to a company report, Apple’s wearables, home, and accessory business, encompassing the Apple Watch, AirPods earbuds, and other products, generated $8.28 billion in revenue during the third quarter of 2023.

Following the decision, Masimo shares experienced an almost 5% decline, while Apple shares remained nearly flat.