Apple has filed an appeal after the Biden administration declined to veto a ban on imports of its watches, as per a complaint from medical technology company Masimo. In addition to the appeal, Apple has also requested an emergency order to halt the ban. The company is seeking for the ban to be paused until U.S. Customs and Border Protection determines whether redesigned versions of its watches infringe Masimo's patents. Apple hopes to have the ban put on hold while the court considers its request, stating that it strongly disagrees with the ban and is taking all measures to return its watches to customers in the U.S. as soon as possible.
Masimo has accused Apple of stealing its pulse oximetry technology and incorporating it into its Apple Watch. The U.S. International Trade Commission (ITC) had previously ordered a ban on imports and sales of Apple Watches that utilize blood-oxygen level reading technology. This particular feature was introduced by Apple starting with the Series 6 model in 2020.
The ban was finalized on December 26 after the U.S. Trade Representative, Katherine Tai, decided not to reverse the ITC's decision. Apple, however, remains determined to fight the ban and has appealed to the U.S. Court of Appeals for the Federal Circuit in Washington.
While it is common for companies to settle such disputes, Apple may be confident about finding a workaround or removing the infringing feature quickly. However, legal experts suggest that the case could extend the final verdict by approximately another year if Apple pursues its appeal.
As a result of the ban, Apple has paused the sales of its Series 9 and Ultra 2 smartwatches in the United States. Nevertheless, the watches are still available from other retailers like Amazon, Best Buy, and Walmart. The ban does not affect the sale of Apple Watch SE, a less expensive model, and previously sold watches are not impacted.
Notably, a jury trial on Masimo's allegations against Apple ended in a mistrial last May. In addition to the ITC case, Apple also initiated a patent infringement lawsuit against Masimo in federal court in Delaware. Apple accuses Masimo of using legal actions as a strategy to pave the way for its own competing smartwatch.
It is worth mentioning that the last time a presidential administration vetoed an ITC ruling was in 2013 when President Obama intervened to overturn an import ban on Apple's iPhones and iPads in their patent dispute with Samsung. The Biden administration chose not to veto a separate import ban on Apple Watches earlier this year, based on a patent infringement complaint from medical technology company AliveCor. However, the ITC has put that ban on hold for other reasons.
Apple's wearables, home, and accessories business, including the Apple Watch, generated $8.28 billion in revenue during the third quarter of 2023, according to the company's financial report.