Apple Watches May Face US Import Ban after Losing Patent Battle to MedTech Company Masimo

ITC ruling could ban imports and sales of most Apple Watch models from December 2023, following patent infringement claim by Medtech company Masimo; ruling now subject to 60-day presidential review.

• The International Trade Commission (ITC) ruled that Apple Watch imports should be halted, siding with medical devices maker Masimo that Apple infringed on two of its patents related to a pulse oximeter. The ban will go into effect on December 25 and includes a cease-and-desist order that stops sales of infringing products already in the country.
• Masimo's CEO, Joe Kiani, hopes the ITC decision will encourage Apple towards a settlement. He stated Masimo’s technology either needs to be incorporated into the Apple Watch, or he would work with Apple to improve its current product to a point where Masimo’s reputation could back it.
• The ruling doesn't immediately affect Apple Watch sales. The imports ban is now subject to a 60-day presidential review. Apple plans to appeal the decision, highlighting that it can continue Apple Watch sales during this review period.
• This ruling is significant because this is not something Apple can ignore or disregard, and it puts Masimo in a stronger position. One of Apple’s previous tactics - trying to convince the Patent Trial and Appeal Board to invalidate Masimo’s patents - has already failed.
• Apart from the potential settlement, Apple could also disable the pulse oximetry function or create a redesign that doesn’t infringe on Masimo’s patents. However, analysts believe a settlement agreement is the most likely outcome, citing that redesigning the hardware would be extremely time-consuming.

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