A U.S. appeals court temporarily suspended a government commission’s import ban on certain Apple smartwatches after a patent dispute with medical-technology firm Masimo. Apple swiftly filed an emergency request with the U.S. Court of Appeals for the Federal Circuit to halt the order, following the U.S. International Trade Commission’s ruling that Apple had infringed Masimo’s patents.
Masimo, alleging employee poaching and theft of pulse oximetry technology, sought to block imports and sales of Apple Watches featuring blood-oxygen level reading technology. Apple argued for a pause, awaiting a U.S. Customs and Border Protection decision on redesigned watch versions. The appeals court’s unexpected move allows Apple to resume sales, impacting both companies’ financial stakes. Analysts anticipate a decisive appeals case in January.
Masimo’s shares dipped nearly 4% post-ruling, contrasting Apple’s stable performance. The legal battle’s outcome remains pivotal, potentially influencing future hardware approaches for Apple’s sought-after health features. As the ITC ban threat eases, Apple’s wearables, home, and accessory business, including the contentious Apple Watch, continues to be a revenue powerhouse, reporting $8.28 billion in Q3 2023.
