Apple has been granted a temporary reprieve by a US appeals court, allowing the tech giant to resume sales of its flagship smartwatches. This decision comes after the court intervened to halt a government commission’s import ban on the devices, which was imposed in connection with a patent dispute over Apple’s medical monitoring technology. The legal battle stems from a ruling by the US International Trade Commission (ITC), which had determined that Apple violated the patents held by Masimo, a medical technology company based in Irvine, California.
Masimo had accused Apple of infringing on its patents related to pulse oximetry technology, alleging that Apple incorporated this technology into its smartwatches, specifically the Series 6 model onwards.
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Analysts predict that the final decision in this dispute could have significant financial implications for both companies, potentially costing millions of dollars. It may also lead to a settlement or necessitate a technological workaround by Apple. However, the adverse impact on Apple’s reputation is considered a more substantial concern, overshadowing any financial repercussions.
Following the court’s decision, Masimo’s shares experienced a 4.6 per cent decline, closing at $115.11, while Apple’s shares remained flat at $193.15.
In response to the court’s ruling, Apple expressed its satisfaction, stating, “We are thrilled to return the full Apple Watch lineup to customers in time for the new year.” The company announced the availability of Apple Watch Series 9 and Apple Watch Ultra 2, including the blood oxygen feature, for purchase in the United States through Apple Stores and its official website.
The ITC had initially imposed a ban on the import and sale of Apple Watches equipped with blood-oxygen level reading technology. Apple had temporarily halted sales of the affected devices from its website and retail locations, while the ban did not impact the Apple Watch SE, a model without a pulse oximeter, and previously sold watches.
The legal dispute between Apple and Masimo involves allegations of employee poaching, theft of technology, and competing claims of intellectual property infringement. Apple contends that Masimo’s legal actions are a strategic move to pave the way for its smartwatch in the market.
As the legal proceedings unfold, Apple is exploring various legal and technical options. The US Court of Appeals for the Federal Circuit has temporarily paused the ban, allowing Apple to resume sales for now. The court has granted the ITC until January 10 to respond to Apple’s request, and further decisions will shape the trajectory of this high-profile patent dispute.