Apple’s Future Hinges on Legal Battle Over Watch Feature

Apple’s (NASDAQ:AAPL) decision to discontinue the blood oxygen feature on its smartwatches in the face of a potential U.S. ban is paradigmatic of the corporate struggle against patent infringement.

The US Border and Protection Agency granted Apple (AAPL) a workaround on Friday as it “determined that Apple’s redesign falls outside the scope” of an import ban, as reported by Bloomberg and Reuters among others.

Medical technology company Masimo (NASDAQ:MASI) took legal action against Apple (AAPL) in 2020, asserting that the blood oxygen feature violates several patents. Masimo (MASI) filed a complaint with the International Trade Commission, prompting a cease-and-desist order against Apple (AAPL) over the patent in October.

Apple (AAPL) anticipates a ruling on its motion for a stay for the entire appeal period from the US Court of Appeals for the Federal Circuit as early as Tuesday, according to a Bloomberg report on Monday.

Masimo praised Apple’s claim that its redesigned watch does not contain pulse oximetry, stating “It is especially important that one of the world’s largest and most powerful companies respects the intellectual property rights of smaller companies and complies with ITC orders when it is caught infringing.”

The U.S. appeals court upheld two prior decisions by a patent tribunal favoring Masimo (MASI) in its intellectual property dispute with Apple (AAPL) over pulse oximeter sensors in certain Apple Watch models, referring to findings by the U.S. Patent and Trademark Office about the blood oxygen sensors.