The U.S. International Trade Commission today denied Apple’s request for a stay on the rapidly nearing Apple Watch sales ban while Apple files an appeal. ([PDF via The Verge])
Apple filed the appeal on October 30, in an attempt to continue selling the Apple Watch while an appeal was underway, but the ITC refused the request. The ITC has specifically ordered Apple to stop importing Apple Watch blood oxygen sensor equipment that infringes on patents owned by medical device company Masimo, this effectively puts an end to the sales of the most recent Apple Watch models, including the Apple Watch Series 9 and Apple Watch Ultra 2.
U.S. sales of the Apple Watch Series 9 and Apple Watch Ultra 2 are scheduled to come to a halt online after 12:00 p.m. on Thursday, December 21. In-store sales will cease after December 24. The sales ban is limited to the United States and only affects Apple. Best Buy, Walmart, Target, and other retailers can continue to sell the affected models until supplies are exhausted.
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) 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 White House could still give Apple a reprieve by vetoing the ITC’s decision, but so far the Biden administration has not made a move to do so. The White House has until Christmas Day, December 25 to make a decision.
Apple engineers are reported to be “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.
