U.S. appeals court allows Apple to restart most smartwatch sales after import ban
On Wednesday, Apple was given the green light to resume sales of most of its $18 billion smartwatch business, following a U.S. appeals court’s decision to stay a federal agency’s import ban on some models of Apple smartwatches. The ban had been imposed by the U.S. International Trade Commission in October after finding that Apple had infringed on patents held by Masimo, a medical technology company based in Irvine, California.
The ban had put a temporary halt on the import of the Apple Watch Series 9 and Ultra 2 models, but Apple announced that the products will be back on sale in stores on Wednesday and will resume online sales on Thursday. The company is also seeking approval for redesigned versions of the affected models from U.S. Customs and Border Protection, with a decision scheduled for January 12 next year.
The dispute between Apple and Masimo centers around the use of pulse oximeters, a sensor that measures a user’s blood oxygen levels. Masimo has accused Apple of infringing its patent rights and stated that Apple had not contacted them about a potential settlement since the ban was issued.
In response, Apple has denied the accusations, claiming that Masimo engaged in plagiarizing its technology. The tech giant’s watch business may only account for 5% of its total sales, but it plays a crucial role in its ambitions in the health field. Apple is also the largest supplier in the smartwatch market, representing nearly 60% of total global sales, according to Counterpoint Research.
But the legal battle between Masimo and Apple dates back to their collaboration in 2013, when Apple explored integrating Masimo’s health sensing technology into its products. The tension between the two companies has persisted, with Masimo and other smaller technology firms accusing Apple of adopting their technology after failed negotiations and then pursuing aggressive legal tactics to avoid paying patent royalties.
Apple maintains that its use of the patented system is fair and reasonable, consistent with the practices of other companies of similar size. However, the legal dispute over intellectual property rights has yet to be resolved, with potential implications for the future of smartwatch innovation and industry competition.