Apple's Timepiece Trouble: Patent Dispute Puts Apple Watch Imports In Jeopardy

In the latest update on the patent dispute between Apple Inc. (NASDAQ:AAPL) and medical technology firm Masimo (NASDAQ:MASI), the U.S. International Trade Commission or ITC has issued a potential ban on Cupertino from importing its Apple Watch.

What Happened: On Thursday, the ITC upheld a January judge’s decision, which found Apple guilty of infringing Masimo’s patent rights. These rights pertain to a light-based technology used in blood-oxygen-level monitoring. 

The ruling, however, is not effective immediately, as it awaits presidential review and possible appeals. U.S. President Joe Biden’s administration has 60 days to determine whether to veto this ban before it comes into effect. Notably, Presidents have rarely vetoed bans in the past, reported Reuters. 

After the review, Apple can challenge the ban in the U.S. Court of Appeals for the Federal Circuit. 

An Apple spokesperson argued that Masimo is unjustly using the ITC to prevent a crucial product from reaching U.S. consumers, thereby paving the way for Masimo’s watch that mimics Apple’s. 

Despite the decision’s lack of immediate impact on sales, Apple is determined to continue its appeal efforts.

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Masimo’s CEO, Joe Kiani, sees the ruling as a stern message that no company can disregard the law, no matter how large. 

It remains unclear which Apple Watch models the ban would affect, but Masimo’s 2021 complaint indicates that the 2020 Apple Watch Series 6, which first introduced blood-oxygen monitoring capabilities, violated its patents.

The ITC case is part of a larger intellectual property dispute between Apple and Masimo spanning multiple jurisdictions. The companies are involved in litigation, with Masimo alleging that Apple stole its technology for several Apple Watch models.

Why It Matters: This dispute began in January 2023 when a U.S. judge ruled that Apple had infringed on one of Masimo’s pulse oximeter patents. 

At the time, Apple was found guilty of importing and selling certain Apple Watches with light-based pulse oximetry functionality, thus violating Masimo’s patent. 

This ongoing legal battle and the potential import ban could significantly impact Apple’s sales and reputation in the future.

Image Credits – Shutterstock

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