A United States federal trade agency ruled in a landmark decision on Thursday that Apple had infringed upon the patent of a rival technology business, which might lead to the importation of certain Apple wearable models being banned.
The legal battle stems from a complaint that medical technology company Masimo filed with the US International Trade Commission (ITC) in 2021, claiming that Apple had violated its patents about blood-oxygen level testing. Since 2020, Apple has included a pulse oximeter sensor in the majority of its new Watch models, according to Gizmodo.
Can Apple Prevent the Looming Apple Watch Ban?
After the ITC investigation concluded Apple was in breach of United States trading standards, a limited exclusion order was enacted.
This order bans certain types of Apple watches from being imported into the US. Now, it falls on the Biden Administration to either uphold or reject this ITC ruling within 60 days. Apple is free to challenge the ruling if the administration moves to decline, according to the Wall Street Journal.
There are many options available to Apple to prevent a possible Apple Watch ban. They may either work with Masimo to reach a civil settlement via discussions or update their software so that it no longer depends on Masimo's disputed technology.
Masimo and Apple have been embroiled in a protracted court dispute for the last three years over claims of staff poaching and technology theft. Joe Kiani, the CEO of Masimo, stressed that "even the largest company in the world is not above the law."
In response, Apple claimed that Masimo had abused the ITC to prevent US consumers from purchasing its products while simultaneously releasing a watch that allegedly imitated Apple's technology.
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According to Reuters, the continuing intellectual property battle between Apple and Masimo, which spans various jurisdictions, includes numerous cases, including the one before the ITC.
A related issue was the mistrial in May of a jury trial concerning Masimo's claims of Apple stealing technology in a federal court in California.
Simultaneously, Apple has filed a lawsuit in federal court in Delaware against Masimo for patent infringement. Apple claims that Masimo is using legal action as a calculated move to clear the way for its rival wristwatch.
Apple's Mounting Legal Issues
AliveCor, a medical technology startup, and Apple are engaged in a separate patent battle that might result in an import ban. The ITC issued a ban in February, but it is still pending while legal actions over AliveCor's patent validity are taking place.
From what company documents reveal, Apple's wearable tech, home devices, and other accessories-including popular products like AirPods headphones and Apple Watches-had sales totaling over $8.28 billion in the third quarter of 2023.
More recently, Masimo introduced them to an ever-growing line of companies accusing Apple of illicit tech theft. As expected, the tech giant has repeatedly refuted these claims.
Apple maintains that many of the patents it is being accused of violating are very broad, a claim consistent with other legal issues like the one it had with AliveCor, which the company promptly contested and dodged.
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