Apple can resume sales of two models of its iconic smart watches for now, after a US appeals court on Wednesday suspended the import ban on the items imposed by a government commission in a patent dispute over its technology. medical monitoring.
The technology company had filed an emergency request with the US Court of Appeals for the Federal Circuit to stop an order from the US International Trade Commission (ITC; federal agency), which in October ruled that Apple had infringed two patents of the biotechnology company Masimo with its blood oxygen measurement device, one of the big claims of its successful series of smart watches.
According to analysts, the final decision could cost both companies millions of dollars and force Apple to reach an agreement or adopt some type of compromise technological solution that does not excessively harm the interests of the parties. Ultimately, however, any financial hit to Apple will likely be less than the impact of the bad publicity the lawsuit is generating, in the midst of the holiday sales campaign, analysts say. The models subject to precautionary suspension were the Apple Watch Series 9, the most recent, and Ultra 2.
Shares of Masimo, a medical technology company based in Irvine, California, have fallen 6.3% after the decision, while those of Apple have remained practically stable.
The ITC's suspension order on importing and selling Apple Watch is limited only to models equipped with technology to read blood oxygen levels. Starting with its Series 6 model in 2020, Apple included that pulse oximetry feature in its watches. The Biden Administration refused to overturn the ITC decision before the December 25 deadline. The resumption of sales of the Series 9 and Ultra is provisional, as the court has given the commission until January 10 to respond to Apple's request for a longer suspension during the court challenge.
The ruling by the Washington appeals court, issued one day after Apple urgently requested that the suspension be postponed, represents even temporary relief – while the court evaluates the technology company's request to suspend the ban for the duration of the patent litigation – for this important technology business division, which represents 18 billion of the company's $383.29 billion in annual sales. Apple is the world's largest seller of smartwatches, with almost a third of global sales volume.
Apple had stopped selling its Series 9 and Ultra 2 watches in its store on-line and in US points of sale last week. Online sales were suspended on December 21, and the last day to buy a new watch at an Apple retail store was Christmas Eve.
To settle the dispute, Apple has developed an update to the software for the Apple Watch that he believes will address Masimo's objections. In parallel with its action in court, the Cupertino company has requested approval from the US Customs and Border Protection Office for the redesigned versions of the two watch models subject to the ban. The customs office is responsible for enforcing import bans and is scheduled to decide on Jan. 12 whether Apple's redesign meets the trade agency's standards.
Masimo has accused Apple of hunt to tie up its employees, unfairly, and to steal its pulse oximetry technology and incorporate it into Apple Watches. Apple has fought back, calling Masimo's legal actions a “pavement maneuver” for its own smartwatch.
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