Apple Watch Series 9 and Ultra 2 Banned Over Patent Dispute: What You Need To Know

In a significant development, the United States International Trade Commission (USITC) ruling has led to the sales for Apple’s latest smartwatches, namely Apple Watch Series 9 and Ultra 2, banned in the United States. 

Why Did Masimo Sue Apple?

Masimo, which makes a smartwatch called the Masimo W1, sued Apple in 2020 for allegedly stealing trade secrets and infringing on its patents. It claimed that Apple hired several Masimo employees and used their knowledge of Masimo’s products to develop the Apple Watch’s blood oxygen monitoring capabilities. 

That case went on as Apple also filed two patent infringement lawsuits against Masimo in 2022, accusing it of copying its watches’ features.

Masimo’s CEO, Joe Kiani, has additionally accused Apple of heightening tensions between the two companies. Dealing with such intensity, Apple aims to address the patent violation by tweaking the pulse oximeter functionality. However, there is uncertainty regarding whether the USITC will accept this proposed solution.

USITC Ruling And White House Decision

Apple has stopped selling its latest Watch models in the US after losing a legal battle with Masimo over the blood oxygen monitoring feature.

The US International Trade Commission (ITC) issued an order on December 26 that prohibits Apple from importing and selling the Apple Watch Series 9 and Ultra 2 in the US. This followed a ruling in October that found Apple infringed on patents held by Masimo, a company that specializes in light-based technology to measure blood oxygen levels.

The order was under presidential review until December 25. Despite Apple’s appeal to the Federal Circuit court and a request for an emergency stay on the ban, the White House chose not to overturn the USITC’s determination. The same thing occurred when President Barack Obama overturned an ITC ruling for Apple in 2013 over a patent dispute with Samsung. This decision has made Apple face restrictions on importing and selling the Apple Watch Series 9 and Apple Watch Ultra 2 in the US. 

The US Trade Representative Katherine Tai confirmed the decision in a statement on Tuesday, saying that “after careful consultations, Ambassador Tai decided not to reverse the ITC’s determination and the ITC’s decision became final on December 26, 2023″.

Citing a violation of Masimo’s patent, the USITC’s ruling raises questions about the future of Apple’s smartwatch market in the US. Apple has emphasized its commitment to exploring legal and technical avenues to challenge the ban. This includes submitting a redesigned version of the Series 9 and Ultra 2 watches for approval by US Customs.

Responding to the USITC ruling, Masimo CEO Joe Kiani said the order “should help restore fairness in the market” and that Apple “deliberately infringed” on his company’s patents.

How Does It Affect Apple And Its Customers?

The implications of this ruling are substantial for Apple, as the affected models include the Apple Watch Series 6 and later, as well as all versions of the Apple Watch Ultra. These models have been integral to Apple’s wearables, home, and accessories business, positioning the company as a key player in the smartwatch market. The decision has forced Apple to remove the affected watches from its online store on December 21 and from its retail outlets on December 24, in anticipation of the order being finalized. The cheaper Apple Watch SE, which does not have the blood oxygen sensing feature, remains on sale, as well as older models with the feature.

Apple has filed an appeal to the Federal Circuit court to overturn the ITC ruling and requested a temporary stay on the ban until January 12. Meanwhile, the US Customs will decide whether Apple’s proposed redesign of the watches infringes Masimo’s patents.

“At Apple, we work tirelessly to create products and services that meaningfully impact users’ lives. It’s what drives our teams — Clinical, Design and Engineering — to dedicate years to developing scientifically validated health, fitness and wellness features for Apple Watch,” Apple said in a statement. 

“We strongly disagree with the USITC decision and resulting exclusion order, and are taking all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the U.S. as soon as possible”.

The ban comes during the critical holiday shopping season, when smartwatches are among the top products sold. It is not surprising to see that the Apple Watch is negatively affected as it is one of Apple’s most important products. Specifically, it has helped push the company’s accessories business to be its second-largest product category behind the iPhone.

Where Can You Still Buy The Newest Apple Watches?

Other retailers, such as Amazon, Best Buy, Walmart and Target, are still selling the Apple Watch Series 9 and Ultra 2 in stores and online. However, they may not be able to replenish their inventory once they run out. The order only affects sales in the US, meaning the watches are still available in other markets.

While Apple grapples with the ban, major retailers have confirmed their intentions to continue selling the Apple Watch Series 9 and Ultra 2. Best Buy, for instance, still offers the affected watches on its website as of the latest update.

Amazon, another significant retailer, is also continuing to sell the remaining stock of the affected models. The response from these retailers signals a potential avenue for customers to obtain the Apple Watch Series 9 and Ultra 2, albeit for a limited time and subject to existing inventory.

Conclusion

The Apple Watch Series 9 and Ultra 2 sales ban in the US marks a pivotal moment in the ongoing legal dispute between Apple and Masimo. As Apple explores legal and technical avenues to overturn the ban, the implications for its market presence are substantial.

The outcome of this dispute will not only impact Apple’s business but will also shape the dynamics of patent conflicts within the rapidly evolving smartwatch industry. Consumers, meanwhile, are left to navigate alternative options as the legal battle unfolds, eagerly awaiting updates on Apple’s efforts to resume sales of its latest and most advanced smartwatches in the US market.