Introduction:
In a recent development, the Biden administration has chosen not to veto the International Trade Commission’s (ITC) ruling, thereby upholding a U.S. ban on the import of Apple Watch Series 9.
The ban, rooted in patent infringement claims made by health tech company Masimo, went into effect on December 26, 2023.
Apple had already ceased online sales on December 21, followed by in-store sales three days later.
Image Credits: Amazon
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Apple Watch Ban : The legal Case
The Watch Series 9 and Watch Ultra 2 were introduced in September, featuring the new S9 chip that enables Siri functionality without requiring an internet connection, a departure from previous Apple wearables.
Positioned as the more budget-friendly option, the Watch Series 9 contrasts with the Watch Ultra 2, boasting an extended battery life and a robust design.
Image Credits: Amazon
The prohibition on selling these two wearables stems from a 2020 lawsuit filed against Apple by Masimo Corp., a medical device manufacturer traded on Nasdaq, and its spinoff, Cercacor Laboratories Inc.
The lawsuit alleges that Apple’s latest smartwatch models infringe upon two patents secured by the plaintiffs in the realm of blood oxygen level monitoring.
Earlier this year, the U.S. International Trade Commission (ITC) ruled in favor of Masimo and Cercacor Laboratories, resulting in a ban on the sale of smartwatches violating their patents, specifically the Watch Series 9 and Watch Ultra 2.
The patents in question, which Apple was found to have violated, pertain to pulse oximetry sensor technology. Apple asserts that this technology is integral to the functioning of the Watch Series 9 and Watch Ultra 2, enabling the measurement of the wearer’s blood oxygen levels. Pulse oximetry sensors operate by directing light onto the wearer’s wrist and analyzing the reflected light beams to provide insights into oxygen saturation.
A Mistrial followed by Countercase
Initially seeking $3.1 billion in damages from Apple, Masimo later reduced the amount to approximately $1.8 billion. In May, the case concluded with a mistrial. At that time, Masimo expressed its intention to pursue a retrial of the case.
Adding to the legal complexities, Apple filed its own patent infringement lawsuit against Masimo last year. In this counterclaim, Apple alleges that Masimo’s legal actions are part of a strategy to pave the way for its W1 smartwatch, launched in 2020.
Similar to Apple’s latest smartwatches, the W1 incorporates a pulse oximetry sensor for monitoring the wearer’s blood oxygen levels.
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Apple Watch Ban: No Relief From Govt.
The United States has upheld the recent ban on the import of Apple Watches as the Biden administration chose not to veto a prior ruling by the International Trade Commission (ITC). The ITC’s decision officially takes effect today.
While ITC-imposed product bans can potentially be overturned by the Office of the U.S. Trade Representative, the agency has chosen not to reverse the ITC’s decision in this case.
Consequently, Apple is now barred from selling the Watch Series 9 and Watch Ultra 2 in the U.S. Apple had already halted sales of these devices on December 18, but reports indicate that they were still available from retailers such as Best Buy Co. Inc as of earlier today.
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Apple’s Response:
Apple, vehemently denying the claims, emphasized the healthcare features of its Apple Watch. In a statement provided to TechCrunch, the company expressed its commitment to creating products that positively impact users’ lives.
At Apple, we work tirelessly to create products and services that meaningfully impact users’ lives. It’s what drives our teams — Clinical, Design and Engineering — to dedicate years to developing scientifically validated health, fitness and wellness features for Apple Watch, and we are inspired that millions of people around the world have benefited greatly from this product.
~Apple
Apple disagreed with the USITC (United States International Trade Commission) decision and the resulting exclusion order. The tech giant announced its intention to take all necessary measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to U.S. customers promptly.
Legal Proceedings:
Alongside the decision not to veto the ITC ruling, Apple has appealed the ban to the Federal Circuit court. The legal battle revolves around the allegations of patent infringement and employee poaching by Masimo. The ITC’s determination has been deemed final, but Apple remains persistent in challenging the decision.
“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.”
~Apple
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Masimo’s Perspective:
Masimo’s founder and CEO, Joe Kiani, has been vocal in expressing satisfaction with the USITC ruling. In a statement following the October decision, Kiani stated that the ruling sends a powerful message that even the world’s largest company is not above the law. He emphasized the importance of holding Apple accountable for unlawfully misappropriating Masimo’s patented technology.
“Today’s ruling by the USITC sends a powerful message that even the world’s largest company is not above the law. This important determination is a strong validation of our efforts to hold Apple accountable for unlawfully misappropriating our patented technology.”
~Masimo’s founder and CEO, Joe Kiani
Apple Watch Ban: Impact
Although the U.S. has prohibited the sale of the Apple Watch Series 9 and Ultra 2, these smartwatches are still accessible for purchase in other countries.
Notably, the more budget-friendly Apple Watch SE, which does not utilize the same sensor technology, continues to be available for sale within the United States.
Conclusion:
The upheld ban on Apple Watch Series 9 represents a significant setback for Apple in the U.S. market. The legal battle between Apple and Masimo highlights the complexities of intellectual property disputes in the highly competitive tech industry. As the legal proceedings continue, the tech community awaits the resolution of this case and its potential implications for future innovations and patent protection.
