Apple wins appeal to temporarily pause Apple Watch ban
Apple won a temporary reprieve from a federal appellate court, which put on hold a trade commission's ban on certain Apple Watches
Apple faces risks from its heavy China dependence after record-breaking year
Barron's Roundtable panelists offer their market outlook after Apple has record-breaking year and whether the tech giant will enter the car business.
A federal appeals court granted Apple’s request to temporarily pause a federal trade commission’s ban on some of its Apple smartwatches amid an ongoing patent dispute with medical technology firm Masimo.
Apple on Tuesday filed an emergency request with the U.S. Court of Appeals for the Federal Circuit to halt the ban, which bars the import and sale of the Apple Watch Series 9 and Ultra 2 because of the U.S. International Trade Commission’s decision that the smartwatches infringed on Masimo’s patented blood oxygen sensor technology. Apple began including pulse oximeters in smartwatches beginning with its Series 6 model in 2020.
The appellate court granted Apple’s request to pause the ban's implementation while it considers the company's request to stay the exclusion order pending its full appeal. The U.S. Court of Appeals for the Federal Circuit is expected to hear Apple's motion for a stay of the ban to be in place throughout its appeal as early as Jan. 15.
APPLE APPEALS AFTER BIDEN ADMIN LETS APPLE WATCH IMPORT BAN STAND
Apple won a temporary reprieve from a federal appellate court which put on hold a trade commission's ban on certain Apple Watches. ((Photo by Michael M. Santiago/Getty Images) / Getty Images)
Apple has also indicated that Customs and Border Protection (CBP) is in the process of determining whether Apple’s redesigned watches violate Masimo’s patent and that the customs agency could reach its decision on Jan. 12.
The ban on Apple Watches determined to have violated Masimo’s patents took effect on Dec. 26 after the Biden administration declined to veto the trade commission’s decision.
Before the ban took effect, Apple preemptively took steps toward compliance. It announced on Dec. 18 that it would halt sales of the Series 9 and Ultra 2 smartwatches on its website beginning on Dec. 21, while the company’s retail locations were to stop selling those watches after Dec. 24.
The company now expects to make those watches available at select Apple Stores today with wider availability by Saturday, with sales on its website resuming Thursday by midday Pacific Time.
The Apple Watch Series 9 and Ultra 2 are at the center of a legal dispute concerning Apple's alleged infringement on Masimo's patents for blood oxygen sensors. (Photographer: Krisztian Bocsi/Bloomberg via Getty Images / Getty Images)
BIDEN ADMIN DECLINES TO OVERRULE TRADE COURT’S IMPORT BAN ON APPLE WATCH
The watches in question were still available as of Tuesday through some other retailers like Amazon, Best Buy and Walmart, according to a report by Reuters. Previously sold Apple Watches and those sold overseas were unaffected by the ban.
Versions of the Apple Watch that don’t contain the blood oxygen sensor are unaffected by the patent dispute and can continue to be sold, such as the less expensive Apple Watch SE.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 229.00 | +0.72 | +0.32% |
| MASI | MASIMO CORP. | 164.95 | +1.45 | +0.89% |
Masimo declined to comment on the ruling.
A spokesperson for Apple told FOX Business, "We are thrilled to return the full Apple Watch lineup to customers in time for the new year. Apple Watch Series 9 and Apple Watch Ultra 2, including the blood oxygen feature, will become available for purchase again in the United States at Apple Stores starting today and from apple.com tomorrow by 12pm PT."
Analysts at Stifel said in a note, "Our litigation expert predicted that a potential Apple appeal would extend the ‘final’ ITC case verdict roughly another year."
A jury trial regarding Masimo’s allegations in a California federal court ended with a mistrial in May. Apple has separately sued Masimo for patent infringement in a Delaware federal court and has called Masimo’s legal actions a "maneuver to clear a path" for its own competing smartwatch.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The Biden administration had the authority to veto the trade ban ruling issued by the International Trade Commission (ITC) through the U.S. Trade Representative's office, which opted to allow the ruling to stand. The last time a president vetoed an ITC ruling was in 2013 when the Obama administration overturned an import ban on Apple’s iPhones and iPads that arose due to a patent dispute with Samsung.
In February 2023, the Biden administration opted against vetoing a separate import ban on Apple Watches based on a patent infringement complaint from medical technology firm AliveCor. The ITC placed the ban on hold for other reasons.
Reuters contributed to this report.
This is a developing story. Please check back for updates.