The Apple Watch Import Ban: A Tangled Tale of Legal Wrangling and Patents

A U.S. appeals court has made a decisive ruling that resurrects a ban on the import of certain Apple Watches, citing patent infringement claims lodged by Masimo (MASI) over the tech giant’s blood oxygen sensors.

The U.S. Court of Appeals for the Federal Circuit has determined that the import prohibition will be reinstated, effectively overturning the prior temporary halt. This ruling is slated to take effect on January 18 at 1700 ET.

Furthermore, it ordains that the specific Apple Watch models implicated cannot be brought into the country while the iPhone-maker mounts an appeal against the original ban issued by the U.S. International Trade Commission (ITC).

This saga began when the ITC’s import ban on Apple Watch Series 9 and Ultra 2 models was ushered in late last month, subsequent to the Biden Administration’s decision not to veto it. On December 27, the U.S. appeals court lifted the ban while deliberating Apple’s plea for an enduring hiatus. It’s worth noting that the company resumed sales of the Watches on the same day.

At the heart of the matter are allegations by Masimo (MASI) that Apple’s (AAPL) blood oxygen sensors used in its Watches encroach on several of the medical technology company’s patents.

In response to the development, Apple (AAPL) has not, as yet, provided a comment in relation to the ruling.

However, unverified media reports circulating over the weekend have suggested that Apple (AAPL) may have to discontinue the blood oxygen feature on its Watches if its court appeal fails. Nevertheless, a conceivable workaround in the form of an approved modification by the U.S. Customs and Border Protection is purported to be in the offing.

It is worth noting that Apple’s (AAPL) latest quarterly results reflected revenue of $9.32B from its wearables, home, and accessories business – encompassing the Apple Watch – for the three months that culminated on September 30, 2023.

Implications for Apple