In a significant development impacting consumers and Apple alike, a ban on the import of Apple Watches into the United States has been implemented, with sales on the company’s website freezing as of December 21st and the devices vanishing from physical Apple Store shelves just ahead of the ban’s official enforcement on December 26th.
The move was triggered by a ruling from the US International Trade Commission (ITC) in October, which determined that Apple had violated patents related to pulse oximetry technology held by Masimo, a medical-monitoring tech company. Masimo’s complaint asserted that Apple’s infringement occurred in its Series 6 watches, where pulse oximetry was first introduced. The ITC specified that the import ban on Apple Watches only pertains to the watches featuring the contentious light-based pulse oximetry capability, but did not delineate the affected models.
The Biden administration had a 60-day window until December 25th to veto the ITC’s order on public policy grounds but opted not to intervene. The decision-making authority was delegated to the US Trade Representative, Katherine Tai, who, after careful consideration, chose not to reverse the ITC’s determination. Apple, in response, expressed strong disagreement with the ITC’s ruling and exclusion order and committed to taking all necessary measures to swiftly return the affected Apple Watch Series 9 and Apple Watch Ultra 2 models to US customers.
This is not the first instance of an import ban on Apple Watches, as a separate ban in February, based on a patent-infringement complaint from medical tech company AliveCor, was also not vetoed by the Biden administration. The ITC, however, has placed that ban on hold for other reasons. Notably, a presidential administration has not vetoed an ITC ruling since 2013 when the Obama administration overturned an import ban on Apple’s iPhones and iPads in the company’s patent dispute with Samsung.
Apple, anticipating the ban, preemptively paused US sales of its high-end Series 9 and Ultra 2 models on December 18th, just ahead of the Christmas Day deadline. The ITC’s order, however, does not impact the lower-priced Apple Watch SE, which lacks pulse-oximetry capabilities and continues to be available for sale.
As of December 26th, Series 9 Apple Watches were still accessible through various sellers, including Amazon, Best Buy, and Walmart, according to Reuters reports. Apple has informed its customer service employees that out-of-warranty hardware repairs and whole unit replacements for Apple Watch Series 6 onward (excluding the SE) will be unavailable during the duration of the ban imposed by the US ITC.
In response to the import ban on Apple Watches, the tech giant has taken legal action by appealing to the U.S. Court of Appeals for the Federal Circuit in Washington. Additionally, Apple filed an emergency request on Tuesday, urging the Federal Circuit to temporarily halt the ban. The company has specifically requested a pause until U.S. Customs and Border Protection completes its assessment of redesigned versions of the watches to determine any potential infringement on Masimo’s patents. Apple seeks to put the ban on hold during the court’s consideration of its appeal. The customs office is anticipated to deliver its decision on January 12, as disclosed by Apple.
Despite the company’s request to halt the ban during the appeal being rejected by the ITC on December 20th, Apple is reportedly working on software changes that would enable its watches to operate without infringing Masimo’s patents. Whether this workaround gains approval from the US Customs and Border Protection remains uncertain.
Masimo, for its part, alleges that Apple engaged in unfair practices, including hiring away employees and stealing technology after discussing a potential collaboration. A jury trial on Masimo’s allegations ended with a mistrial in May, with no rescheduled date as of now. Apple, in turn, has countersued Masimo for patent infringement in Delaware federal court.
Apple’s wearables, home, and accessory business, which includes the Apple Watch, AirPods earbuds, and other products, generated $8.28 billion in revenue during the third quarter of 2023, according to a company report. The ongoing legal battle and import ban pose challenges for Apple in maintaining its market share and revenue in the wearables sector.
