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Apple vs. Masimo: Will Apple Watches Be Timed Out of the US Market?

Apple Watches ban
Apple Watches ban

The pause of the US Apple Watch import ban is a temporary hurdle in the ongoing patent dispute between Apple and Masimo. Here’s what’s coming up:

Immediate Future:

  • Sales resume: Apple Watch Series 9 and Ultra 2 are back on sale in the US, both online and in physical stores. The lower-priced SE wasn’t included in the ban due to missing the disputed feature.
  • Court decision on longer stay: The US Court of Appeals for the Federal Circuit is considering Apple’s request to delay the ban for the duration of its appeal. This decision could come anytime before Jan. 12th, 2024.

Further developments:

  • Appeals process: Apple has appealed the International Trade Commission (ITC) ruling which found their technology infringed on Masimo’s patents. This process could take months or even years.
  • Workaround design: Apple is working on a redesigned Apple Watch that wouldn’t infringe on Masimo’s patents. They need approval from US Customs and Border Protection by Jan. 12th for this option to be viable.
  • Settlement?: Both parties have expressed willingness to settle the dispute.

Possible outcomes:

  • Court upholds ban: If the court doesn’t grant a stay and the ITC ban goes into effect, Apple will no longer be able to import or sell infringing models in the US.
  • Court delays ban: If the court grants a stay, Apple can continue selling while the appeals process goes on.
  • Apple wins appeal: If Apple wins the appeal, the ITC ruling would be overturned and the import ban lifted.
  • Masimo wins appeal: If Masimo wins the appeal, the ITC ban would remain in place.
  • Settlement: If both parties reach a settlement, the terms would determine the fate of Apple Watch sales in the US.
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Current situation:

  • Apple can sell Series 9 and Ultra 2 in the US for now.
  • Both sides are engaged in the appeals process and potentially seeking a settlement.
  • The ultimate fate of Apple Watch sales in the US depends on the court’s decision on the stay request, the outcome of the appeal, and the possibility of a settlement.

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