US trade tribunal bans Apple from importing Watches for sale because of patent infringement issue

The US International Trade Commission has issued an order that could potentially prevent Apple from importing its Apple Watches into the United States. This action comes after the ITC determined that the devices infringe upon the patent rights of medical technology company Masimo related to light-based technology for reading blood-oxygen levels.

The ruling, which upholds a decision made by a judge in January, does not have an immediate impact, as it is subject to presidential review and could also face potential appeals in the legal process. The situation may evolve as it undergoes further review and legal proceedings.

President Joe Biden’s administration will have 60 days to decide whether to veto the import ban based on policy concerns before it goes into effect. Presidents have rarely vetoed bans in the past.

Apple can appeal the ban to the US Court of Appeals for the Federal Circuit after the review period ends.

“Masimo has wrongly attempted to use the ITC to keep a potentially lifesaving product from millions of US consumers while making way for their own watch that copies Apple,” an Apple spokesperson said. “While today’s decision has no immediate impact on sales of Apple Watch, we believe it should be reversed, and will continue our efforts to appeal.”

Masimo Chief Executive Officer Joe Kiani said the decision “sends a powerful message that even the world’s largest company is not above the law.”

The ITC decision did not specify which models of Apple Watches would be affected by the ban. Masimo’s 2021 complaint said the 2020 Apple Watch Series 6, the first model with blood-oxygen monitoring capabilities, infringed its patents.

Masimo’s complaint said the infringing Apple Watches were made in China. Apple has since shifted some of its Apple Watch production to Vietnam.

The ITC case is part of an intellectual property fight between Apple and Masimo that spans several jurisdictions.

Irvine, California-based Masimo has accused Apple of stealing its technology and incorporating it into several Apple Watch models. A jury trial on Masimo’s allegations in California federal court ended with a mistrial in May.

Apple has separately sued Masimo for patent infringement in federal court in Delaware. It has called Masimo’s legal actions a “manoeuvre to clear a path” for its own competing smartwatch.

Apple is also facing an Apple Watch import ban in a separate patent dispute with medical technology company AliveCor. The ITC issued a ban in February but placed it on hold during related proceedings over the validity of AliveCor’s patents.

Apple’s wearables, home and accessory business, which includes the Apple Watch, AirPods earbuds and other products, brought in $8.28 billion in revenue during the third quarter of 2023, according to a company report.