The U.S. International Trade Commission (ITC) has issued a ban on the import and sale of certain Apple Watches, citing patent infringement related to blood-oxygen level monitoring technology. The Biden administration, after careful consideration, decided not to veto the ITC’s decision, marking a significant development in the ongoing legal battle between Apple and medical monitoring technology company Masimo.
Background of the Ban
The ITC’s order, set to take effect on December 26, stems from a complaint filed by Masimo, accusing Apple of incorporating its pulse oximetry technology without proper authorization. This technology is a crucial feature in Apple Watches, starting with the Series 6 model released in 2020. The ban affects the sales of Apple Watches using the contested technology.
U.S. Trade Representative’s Decision
U.S. Trade Representative Katherine Tai, responsible for overseeing trade matters, chose not to reverse the ban after extensive consultations. The decision was announced on Tuesday, solidifying the ITC’s ruling. This move reflects the administration’s commitment to respecting the findings of government tribunals.
Impact on Apple and Possible Appeal
Apple has the option to appeal the ban to the U.S. Court of Appeals for the Federal Circuit. The company has already taken preventive measures, pausing the sales of affected models in the United States. Notably, the ban does not impact the sale of the more affordable Apple Watch SE, and previously sold watches are exempt.
Legal Battles Between Apple and Masimo
Masimo alleges that Apple not only used its technology without permission but also recruited its employees. The legal dispute between the two companies is multifaceted, with a jury trial in California federal court ending in a mistrial in May. In a countermove, Apple has filed a patent infringement lawsuit against Masimo in federal court in Delaware.
Historical Context and Revenue Impact
The decision marks a departure from historical patterns, as presidential administrations have rarely vetoed ITC rulings. The last such instance occurred in 2013 when President Barack Obama’s administration overturned an import ban on Apple’s iPhones and iPads in a patent dispute with Samsung.
The ban’s impact extends beyond legal ramifications, affecting Apple’s wearables, home, and accessory business. This segment, which includes the Apple Watch, AirPods, and other products, generated $8.28 billion in revenue during the third quarter of 2023, according to a company report.
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Credit: Blake Brittain