Apple Wins Legal Battle: Import Ban on Watch Series 9 and Ultra 2 Temporarily Suspended

Apple (NASDAQ:AAPL) has scored a victory in a dispute filed by Masimo over alleged patent infringement related to blood oxygenation measurement technology integrated into some models of its smartwatches.

The Court Appeal

On Wednesday, a US Court of Appeals temporarily suspended the import ban imposed by the US International Trade Commission (ITC) on the Watch Series 9 and Ultra 2 models resulting from this litigation.

"The motion for a temporary suspension is granted to the extent that the Remedial Orders are temporarily suspended," reads the court document.

Thanks to this determination, the Cupertino giant can continue selling its latest models of smartwatches in the United States, which contribute to its wearable technology business unit that recorded net sales of $39.845 billion in fiscal year 2023, ending in September.

On Tuesday, Apple challenged the ban resulting from the complaint filed by the medical technology company, accusing it of hiring its employees, stealing its blood oxygen level measurement technology, and integrating it into its devices.

Apple also filed an emergency request for the US Federal Circuit Court of Appeals to halt the ban.

Additionally, it requested that the Federal Circuit suspend the import ban until the US Customs and Border Protection decides whether the redesigned versions of its watches infringe Masimo's patents, and to maintain the suspension while the request is being reviewed.

Apple took these actions after the US government decided not to overturn the ITC's decision in October that the blood oxygen sensor in the devices had infringed Masimo's intellectual property.

As a result, the tech giant stopped selling its Series 9 and Ultra 2 watches last week.

Following the announcement of the suspension ruling, Apple's shares reversed the losses seen throughout most of Wednesday's session, and around 12:50 PM Mexico City time, the stock was up 0.22% trading at $193.47.This victory for Apple is a significant win for the company, allowing it to continue selling its latest smartwatch models in the United States.

The temporary suspension of the import ban gives Apple the opportunity to defend itself against the allegations of patent infringement. With the growing popularity of wearable technology, particularly smartwatches, this decision is crucial for Apple's wearable technology business unit.

The company can now focus on addressing the claims made by Masimo and ensuring that its devices comply with intellectual property laws.

Additionally, they sought the Federal Circuit to suspend the import prohibition until the US Customs and Border Protection decides if the redesigned versions of their watches infringe on Masimo's patents, and to maintain the suspension during the review.

Apple took these actions after the US Government chose not to overturn the ITC's decision in October, determining that the blood oxygen sensor in the devices infringed on Masimo's intellectual property.

Consequently, the tech giant ceased sales of its Series 9 and Ultra 2 watches last week.

Following the announcement of the suspension ruling, Apple's shares reversed losses seen earlier on Wednesday. The stocks exhibited a 0.22% gain, trading at $193.47.

This legal win provides Apple with a crucial reprieve, allowing the company to continue marketing and selling these popular smartwatch models in the US market.