Background of the Case
Apple Inc. AAPL has made a bold move by appealing to a U.S. appeals court to reverse the ban on the import of certain Apple Watches. This ban came into being due to a contentious patent dispute with the medical tech company, Masimo Corporation MASI.
Apple’s Defense
What exactly transpired? Apple decided to take a stand by requesting the U.S. Court of Appeals for the Federal Circuit to overrule the ban set by the U.S. International Trade Commission (ITC) on specific Apple Watches, as per Reuters.
Counter-Arguments and Claims
The tech giant, headquartered in Cupertino, California, argued that the ban should be overturned since Masimo’s patented wearable technology was solely theoretical at the time of the ITC complaint in 2021. Furthermore, Apple contended that Masimo’s patents were not valid, and its watches did not infringe upon them.
Repercussions and Numbers
The ban, upheld by the White House in December of 2023, has had a substantial effect on Apple’s business operations and sales. The company had to discontinue sales of its latest Watch models, such as the Apple Watch Series 9 and Apple Watch Ultra 2, in the U.S. prior to the ban taking effect. According to IDC’s estimates, Apple managed to distribute 43.9 million Apple Watch units in 2022, generating nearly $20 billion in revenues at an average selling price of $466. Newer models, like the Series 9 and Ultra 2, comprised about 80% of total shipments.
