The US International Trade Commission (ITC) has taken action that could prevent Apple from importing its Apple Watches due to a violation of medical technology company Masimo’s patent rights. Following a judge’s ruling from January, the full commission has affirmed that Apple infringed on Masimo’s patents related to light-based technology for blood-oxygen level readings.
It’s important to note that this decision won’t have an immediate impact as it must undergo a presidential review and may face potential appeals. The Biden administration will have 60 days to decide whether to veto the import ban based on policy considerations, though such presidential vetoes are relatively rare in the past. If the ban is upheld, Apple can appeal the decision to the US Court of Appeals for the Federal Circuit after the review period.
An Apple spokesperson criticized Masimo, stating that they were attempting to hinder a potentially life-saving product for millions of US consumers while introducing their own watch, which Apple claims imitates their technology. Apple intends to continue its efforts to challenge the decision.
Masimo’s CEO, Joe Kiani, viewed the ITC’s decision as a strong message that even the largest companies must abide by the law. The ITC’s ruling didn’t specify which Apple Watch models would be affected by the ban, but Masimo’s complaint from 2021 pointed to the 2020 Apple Watch Series 6, the first model with blood-oxygen monitoring capabilities, as infringing on their patents. These allegedly infringing Apple Watches were reported to be manufactured in China, with Apple subsequently shifting some of its production to Vietnam.
This ITC case is part of a broader intellectual property dispute between Apple and Masimo spanning multiple jurisdictions. Masimo has accused Apple of appropriating its technology for use in several Apple Watch models. A jury trial in California federal court regarding Masimo’s claims ended in a mistrial in May. Simultaneously, Apple has sued Masimo for patent infringement in federal court in Delaware, contending that Masimo’s legal actions are aimed at creating a pathway for their own competing smartwatch.
Additionally, Apple is confronting another potential import ban for Apple Watch in a separate patent dispute involving medical technology company AliveCor. The ITC issued a ban in February but has put it on hold during proceedings related to the validity of AliveCor’s patents. In a separate context, Apple’s wearables, home, and accessory business, which includes the Apple Watch and AirPods, generated $8.28 billion in revenue during the third quarter of 2023, according to a company report.
Source: Reuters