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Apple disclosed it will halt the new sales of Apple Watch Series 9 and Apple Watch Ultra 2 starting December 21. The reason behind this pause is the risk of a potential import ban until 2028, arising from patent infringement allegations by medical technology company Masimo.
Facing Import Ban Over Patent Infringement
In a ruling upheld by the US International Trade Commission (ITC) in October, it was determined that Apple Watches equipped with pulse oximeter features violated two Masimo patents. The ruling is currently under a 60-day Presidential Review Period that concludes on December 25, after which the disputed products could be hit by an import ban effective until the patent expires in 2028.
Even though the review period doesn’t end until Christmas Day, Apple is already taking steps to comply in case the ruling remains in effect. This involves stopping sales of both the Apple Watch Series 9 and the Apple Watch Ultra 2 on its website starting from December 21, and in its retail locations after December 24.
The Apple Watch SE will remain on sale as it lacks the disputed blood oxygen sensor technology, originally introduced by Apple with the Apple Watch Series 6 in 2020.
Until the ruling is potentially vetoed, people can still purchase the watches from third-party retailers. However, if the ruling survives the review period, Apple will be unable to distribute the watch to other retailers like Best Buy from December 25 onwards.
Despite previous cases where President Biden refrained from vetoing ITC rulings concerning patent infringement allegations against Apple, there’s a possibility he may veto this ruling, thus saving the Apple Watches from an import ban.
Apple expressed in a statement their strong disagreement with the ITC ruling and noted they are exploring a range of legal and technical measures to guarantee the availability of Apple Watch to customers. The company assures its commitment to restoring the Apple Watch Series 9 and Apple Watch Ultra 2 to US customers as swiftly as possible, should the order remain valid.
If the Presidential Review Period ends with no veto, Apple intends to appeal against the ITC’s ruling on December 26, even though the watches would still face the import ban.
Masimo, a California-based company, alleged prior encounters with Apple in 2013 revolving around discussions of potential partnership. Masimo accuses Apple of hiring some of its employees and infringing on its technology instead of establishing a partnership. In response, Apple denied these allegations, stating Masimo was “one of many medical-technology companies” contacted at the time,
The clashes between Masimo and Apple extend beyond this case. Noticeably, there’s a pending case against Apple filed in the US District Court in the Central District of California by Masimo, dating back to 2020. Apple, too, filed a patent infringement case against Masimo in 2022 over the Masimo W1 health-tracking watch.
Apple’s Stake in the Smartwatch Market
Apple holds a significant stake in the smartwatch market. Fierce battles are expected since Apple declared a substantial $39,845,000 in sales from accessories, wearables, and home products for the fiscal year ending September 20, 2023. The huge interest from suppliers to third-party retailers in continued Apple smartwatch production also contributes to escalating battles in this area.
The tech giant has hinted at pursuing different strategies to keep its watch line alive. This could involve further litigation or seeking out new technologies. Alternatively, an end to this conflict may come in the form of a licensing agreement between Masimo and Apple.
