Apple Appeals Import Ban on Apple Watches Following Patent Infringement Ruling

In a strategic move to challenge the recent ruling by the U.S. International Trade Commission (ITC), Apple filed an appeal on Tuesday, seeking to overturn the ban on the importation and sale of Apple Watches. The ITC had issued a ruling, effective December 26, prohibiting the import and sale of Apple Watches incorporating blood oxygen-sensing technology covered by patents owned by medical monitoring technology firm Masimo.

Masimo had accused Apple of patent infringement and the poaching of its employees. The ITC order impacts the latest Apple Watch Series 9 and Ultra 2 models, employing the contested blood oxygen-sensing technology. Apple has utilized this technology since its Series 6 model in 2020.

The Biden administration opted not to veto the ITC’s decision, allowing the restrictions to go into effect. Apple’s appeal, filed with the U.S. Court of Appeals for the Federal Circuit, aims to temporarily halt the ban until the U.S. Customs and Border Protection determines whether redesigned watches violate Masimo’s patent. The decision from the customs office is expected on January 12, 2024.

The Office of the U.S. Trade Representative (USTR) Katherine Tai released a statement affirming the ITC’s findings that Apple infringed on two patents owned by Masimo and Cercacor Laboratories Inc. The decision became final on December 26, 2023, following a 60-day review period.

A spokesperson for Masimo hailed the ITC’s decision as a win for innovation and inventors’ rights, emphasizing the importance of an ecosystem rewarding true innovation.

While Apple disagrees with the USITC decision and the resulting exclusion order, the company remains committed to creating products with scientifically validated health, fitness, and wellness features. Apple has suspended sales of the Series 9 and Ultra 2 smartwatches but is taking measures to swiftly return them to customers in the U.S.

Apple’s announcement on December 18 to pause sales was a preemptive move towards compliance. However, reports suggest that the watches are still available through other retailers such as Amazon, Best Buy, and Walmart.

Notably, versions of the Apple Watch unaffected by the patent dispute, such as the less expensive Apple Watch SE, can continue to be sold. Previously sold watches are also not impacted by the ban.

Analysts predict that an Apple appeal could extend the final ITC case verdict by roughly another year. The patent infringement claims between Apple and Masimo have also involved a mistrial in a California federal court, and Apple has countersued Masimo in a Delaware federal court.

The last time a president vetoed an ITC ruling was in 2013, involving a patent dispute between Apple and Samsung. In February 2023, the Biden administration refrained from vetoing a separate import ban on Apple Watches based on a patent infringement complaint from medical technology firm AliveCor. The ITC had temporarily placed that ban on hold for other reasons.