Apple Emerges Victorious as US Appeals Court Halts Apple Watch Ban

In a recent development, Apple has emerged victorious as a US appeals court has issued a temporary halt to a government commission’s import ban on certain Apple smartwatches following a patent dispute with medical-technology firm Masimo.

The company swiftly filed an emergency request with the US court of appeals for the federal circuit to suspend the order, which stemmed from the US International Trade Commission’s (ITC) ruling that Apple had infringed upon patents held by Masimo. Notably, both Apple and Masimo have opted not to comment on the matter at this time.

In a brief four-paragraph ruling, the appeals court announced a temporary pause to the ban while the company’s motion for a longer-term stay is being considered, setting a deadline of 10th January for the ITC to respond to Apple’s request.

Despite the Biden administration’s decision not to veto the ban on Tuesday, Apple acted swiftly to seek a pause later that day.

The legal dispute has seen Masimo accusing Apple of employee poaching, theft of pulse oximetry technology, and its integration into Apple Watches. The ITC’s ruling prohibits the import and sale of Apple Watches containing technology for reading blood-oxygen levels, including the Series 6 model introduced in 2020.

As a result, Apple has halted the sale of its Series 9 and Ultra 2 smartwatches in the US, while these products remain available at other retailers such as Amazon, Best Buy, Costco, and Walmart. However, the restriction does not apply to the Apple Watch SE, a more affordable model without a pulse oximeter. Existing watches previously sold are also unaffected by the ban.

A jury trial in a California federal court regarding Masimo’s allegations against Apple resulted in a mistrial in May, and Apple has also taken legal action against Masimo for patent infringement in a federal court in Delaware, characterizing Masimo’s legal actions as a means to pave the way for its own competing smartwatch.

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

Following the ruling, Masimo’s shares saw a nearly 5% decrease, while Apple’s shares remained almost unchanged, underscoring the high-stakes nature of this legal battle and its potential implications for the wearable technology market.