Business

US appeals court reimposes Apple Watch sales ban

Products are at the centre of a legal dispute over patents for health technology, the latest setback in the technology giant’s dispute with Masimo

A US appeals court has allowed a sales ban on Apple’s Watch Series 9 and Ultra 2 to resume, the latest setback in the technology giant’s dispute with health technology company Masimo. Photograph: Adam Davis/Shutterstock

Michael Acton
Thu Jan 18 2024 - 17:25

A US appeals court has allowed a sales ban on Apple’s Watch Series 9 and Ultra 2 to resume, the latest setback in the technology giant’s dispute with health technology company Masimo over patents for its blood oxygen tracking feature.

The decision on Wednesday by the US court of appeals for the federal circuit will remain in place while Apple pursues its appeal against a decision from a trade panel that blocked the products that Masimo has challenged from being sold in the US.

It casts further uncertainty over when sales of the two products – which were released in September – can resume, even as Apple faces concerns over the strength of its hardware sales.

At the core of the patent dispute with Masimo is a technology called pulse oximetry, which measures blood oxygen levels by shining light into the wrist. California-based Masimo has also accused Apple of misappropriation of trade secrets, partly through hiring its employees, in separate litigation against the company. A mistrial was declared in that case in May.

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The International Trade Commission confirmed in October that Apple was violating Masimo’s patents with the latest versions of its Watch and issued a limited exclusion order, prompting the company to pull the devices from its online and physical stores in the US ahead of Christmas.

[ Apple’s €77bn-a-year services business faces legal reckoning ]

The White House, which has the power to veto such bans from the ITC, opted not to intervene by a December 25th deadline. After the brief pause, Apple resumed US sales late last year when the appeals court granted its request to temporarily lift the ban.

On Wednesday, the same court opted to lift that stay pending the outcome of Apple’s appeal of the ITC’s order. It said it considered a number of factors, including the risk of harm to both sides and the public interest. It emphasised, however, that it had not reached a conclusion on the merits of Apple’s appeal. Masimo and the ITC opposed any extension to the stay.

The court said that the temporary stay will be lifted at 5pm Eastern Time on Thursday. Masimo did not immediately respond to a request for comment.

Meanwhile, Apple has asked US customs and border protection, a federal trade agency, to approve redesigns of its Watch to avoid the contested technology, which would allow it to continue selling a version of it regardless of the ongoing litigation. The CBP had approved that redesign, according to Wednesday’s court order.

Following the court order, Apple said it strongly disagreed with the ITC’s original decision and that it believed the appeals court should reverse it.

Apple said it would be introducing a version of the two new Watch models without the blood oxygen feature, available from its online store as of Thursday, as well as in its physical stores.

Customers who buy the new versions would still see the blood oxygen icon on their device, but would be unable to access the feature, Apple said.

Copyright The Financial Times Limited 2024

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