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Potential Apple Watch Ban Issued by U.S. Trade Tribunal to Face Review by Biden Administration

Potential Apple Watch Ban Issued by U.S. Trade Tribunal to Face Review by Biden Administration

The U.S. International Trade Commission (ITC) on Thursday ordered a ban on Apple Watch imports into the country. The ban follows a ruling by the ITC that Apple had violated pulse oximetry patents held by Masimo. (Via Reuters)

The ban is now subject to review by U.S. President Joseph Biden’s administration, so it does not take effect immediately. Apple can appeal the ban in front of the U.S. Court of Appeals for the Federal Circuit after the 60-day review period ends. Presidents have rarely vetoed bans.

“Masimo has wrongly attempted to use the ITC to keep a potentially lifesaving product from millions of U.S. consumers while making way for their own watch that copies Apple,” an Apple spokesperson said. “While today’s decision has no immediate impact on sales of Apple Watch, we believe it should be reversed, and will continue our efforts to appeal.”

Masimo Chief Executive Officer Joe Kiani said the decision “sends a powerful message that even the world’s largest company is not above the law.”

Masimo in 2020 claimed Apple stole Masimo employees and stole trade secrets while the Cupertino firm was developing the Apple Watch. Masimo was seeking over $1.8 billion in damages and co-ownership of five Apple pulse oximetry patents that Masimo said used its technology.

Apple did indeed hired employees away from Masimo, hiring Chief Medical Officer Michael O’Reilly in July 2013, and then in 2014, it hired Cercacor Chief Technical Officer Marcelo Lamego (Cercacor is a Masimo spinoff company). Masimo claims that the two former employees shared Masimo’s intellectual property when they developed the Apple Watch, which Apple denies.

The ITC decision did not specify which models of Apple Watches would be affected by the ban, but Masimo’s original complaint said the Apple Watch Series 6, released in 2020, infringed its patents.

Masimo is seeking over $1.8 billion in damages and co-ownership of five Apple pulse oximetry patents that Masimo says use its technology.