Bloomberg reports that Apple engineers are “racing” to make changes to algorithms on the Apple Watch that measure a user’s blood oxygen level — a feature that Masimo Corp. has argued infringes its patents.
Apple on Monday announced that it will temporarily cease selling the Apple Watch Series 9 and Apple Watch Ultra 2 in the U.S. later this week, due to an expected ban on some Apple Watch imports into the U.S. The halt of sales is related to the Cupertino firm’s ongoing patent dispute with medical tech company Masimo related to blood oxygen sensing.
Apple said the Series 9 and Ultra 2 will no longer be available to purchase via Apple’s online store in the U.S. starting December 21 (after 12 p.m. Pacific Time), or from Apple retail stores in the U.S. after December 24. The devices will remain available to purchase in other countries.
Bloomberg’s sources tell it that engineers are adjusting how oxygen saturation is determined and how the data is provided to customers, updates that will presumably remove the technology that allegedly violates Masimo patents.
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 hire 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.
While Apple seems to think a software-based solution will resolve the patent issue, it is unlikely that a software fix will be deployed before sales stop, as the changes will need to be tested.
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.
The ban follows a ruling by the ITC that Apple had violated pulse oximetry patents held by Masimo.
The ban is now subject to review by U.S. President Joseph Biden, who has until December 25 to review the order. 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. In the meantime, Apple actively taking steps to comply should the ruling stand.
Apple said that it “strongly disagrees” with the ITC’s order and is “pursuing a range of legal and technical options” to ensure that availability of the Series 9 and Ultra 2 resumes in the U.S. as soon as possible.
