What Comes After the Import Ban on Apple Watch in the United States?

Import Ban on Apple Watches Takes Effect in the United States: Implications for Consumers and Apple's Next Steps

The ITC, a federal agency specializing in international trade disputes, has ruled that a blood-oxygen level reading feature on Apple Watch violates Masimo's pulse oximetry patents.

An import ban on Apple's widely-used Apple Watches has officially been implemented in the United States. Let's delve into what this prohibition entails for consumers and explore the next steps for Apple.

What Led to the Implementation of the Import Ban?

In October, the US International Trade Commission issued a directive instructing Apple to cease the importation and sale of Apple Watches following a complaint filed by medical-monitoring tech firm Masimo.

The ITC, a federal agency specializing in international trade conflicts, concluded that a feature on the Apple Watch designed to read blood-oxygen levels violated Masimo's pulse oximetry patents.

Under the administration of President Joe Biden, there was a 60-day window, until December 25, to overturn the order on grounds of public policy concerns. However, the decision was made not to intervene.

What Impact Does the Import Ban Have on the Sales of Apple Watches in the United States?

Apple, headquartered in Cupertino, California, made an announcement on December 18 that it would proactively halt the sales of its latest high-end Series 9 and Ultra 2 models in the US ahead of the Christmas Day deadline. It's worth noting that the ITC's order does not impact the lower-priced Apple Watch SE, lacking pulse-oximetry capabilities, which continues to be available for purchase at Apple.

While the ITC ruling specifically mentions Apple Watches with the contested light-based pulse oximetry feature, it doesn't specify the affected models. Pulse oximetry was first introduced by Apple in its Series 6 watches. Masimo contends that all Apple Watches with this technology violate its patents.

The ban is targeted specifically at Apple and its associated entities, such as parent companies, subsidiaries, and related business entities. However, its impact may not extend to other retailers that carry Apple Watches.

As of December 26, Series 9 Apple Watches were still accessible through various sellers, including Amazon, Best Buy, and Walmart.

Apple has further declared a cessation of replacing out-of-warranty watches dating back to Series 6 due to the imposed ban.

What Charges Have Been Leveled Against Apple?

Masimo, the company that introduced a watch capable of reading blood-oxygen levels and monitoring various health metrics last year, has accused Apple of luring away its employees and appropriating its technology. This accusation arose following discussions about a potential collaboration between the two companies. A jury trial on Masimo's claims, held in a California federal court, resulted in a mistrial in May, and a new trial date has yet to be scheduled.

In response, Apple has dismissed the legal actions from Irvine, California-based Masimo as an attempt to pave the way for its own competing smartwatch. Furthermore, Apple has countersued Masimo for patent infringement in a Delaware federal court.

What Courses of Action Does Apple Have at Present?

Anticipated next steps for Apple include filing an appeal against the ban with the US Court of Appeals for the Federal Circuit in Washington. However, the ITC rejected Apple's request to temporarily halt the ban during the appeal process on December 20.

In the meantime, Apple is reportedly in the process of implementing software changes aimed at allowing its watches to function without infringing on Masimo's patents. If approved by the US Customs and Border Protection, this workaround could potentially allow Apple to resume the import and sale of the watches.

Masimo asserts that its patents pertain to hardware, casting doubt on the efficacy of a software fix. Despite this, Masimo CEO Joe Kiani has expressed a willingness to explore a resolution to the ongoing dispute.