One day after an import ban on certain Apple Watches officially went into effect, a federal appeals court placed the ban on a brief hold while it weighs whether to grant a longer-term pause.
In a victory for Apple, the U.S. Court of Appeals on Wednesday ordered a halt on the ban on the import and sale of smartwatch models involved in a patent fight, after the tech giant requested that they be paused at least until U.S. Customs and Border Protection (CBP) can determine if the redesigned versions of those watches still infringe the disputed patents.
The CBP is expected to make a decision on Jan. 12, 2024, according to Apple.
The pause means Apple can resume importing and selling the Apple Watch Series 9 and Apple Watch Ultra 2 until the court takes additional action. Both watches so far remain unavailable on the company’s website and in stores after being pulled, although they can still be found at third-party retailers such as Amazon and AT&T.
Blood Oxygen Technology
The patent dispute that led to the ban centers around some Apple Watches’ built-in blood oxygen sensors that can read the wearer’s pulse. Masimo, an Irvine, California-based developer of smart wearables, claimed that Apple incorporated Masimo’s patented technology for measuring blood oxygen level into those watches.In its complaint filed with the U.S. International Trade Commission (ITC), Masimo also accused Apple of hiring away Masimo employees to build the pulse oximetry sensor, which was first featured in the Apple Watch Series 6 in 2020.
The ITC ultimately sided with Masimo after an investigation that began in August 2021. A final decision came in October, ordering Apple to stop importing and selling its smartwatches with the pulse oximetry feature. The ITC order became effective on Tuesday, following a 60-day presidential review period that ended with the Biden administration declining to intervene.
The ban does not affect the Apple Watch SE, a cheaper model that offers most of what an Apple Watch has while cutting out certain features, including pulse-oximetry capabilities. Previously sold watches are also unaffected.
Apple, which has staunchly denied allegations of patent infringement, filed the motion for a pause immediately after the Biden administration allowed the ban to take effect. It has also countersued Masimo, claiming that Masimo was trying to use the federal authority to make way for its own competing smartwatch that allegedly “copies Apple.”
“We strongly disagree with the USITC decision and resulting exclusion order, and are taking all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the U.S. as soon as possible,” it said Tuesday.
In a statement released shortly after the October ITC decision, Masimo founder and chief executive Joe Kiani said the ruling “sends a powerful message that even the world’s largest company is not above the law.”
Biden Administration Declines Veto
Tuesday’s decision to let the ban take effect was made by U.S. Trade Representative Katherine Tai, who is responsible for reviewing and potentially lifting import bans imposed by the ITC.“After careful consultations, Ambassador Tai decided not to reverse the ITC determination, and the ITC’s decision became final on December 26, 2023,” the Office of the U.S. Trade Representatives said.
Presidential overrides of ITC rulings are rare. The latest of such occurred in 2013, when then-President Barack Obama used his authority to overturn an import ban on certain iPhones and iPads involved in a patent dispute between Apple and Samsung.
Earlier this year, President Joe Biden opted not to veto a similar patent infringement ruling involving Apple and AliveCor, a medical device company headquartered in Mountain View, California.
In that ruling, the ITC determined that the electrocardiogram (ECG) technology built into some Apple Watches infringes on AliveCor’s patented portable ECG devices. The decision came with an order that would stop further imports of ECG-equipped Apple Watches—spanning from 2018’s Series 4 model to the more recently introduced Series 8—into the United States, as well as a $2 bond for each of the devices imported or sold during the 60-day presidential review period.
The penalty actions are still on hold, however, since additional patent litigation exists between the two companies.
