Apple’s two latest smartwatch models have just been banned from sale in the US due to a copyright conflict with a company called Masimo. Accordingly, the company will not be allowed to sell or introduce these products at official stores (Apple Store) from December 21 and must stop selling them online by December 24. The ban has not yet affected other markets outside the US.
Between now and the deadline, Apple still has some opportunities to continue selling this product and avoid trouble in the near future.
President Joe Biden vetoes import ban
The White House chief has yet to make a formal decision on the ITC (International Trade Commission) import ban. Joe Biden’s deadline for vetoing the order is December 25, 2023, but Apple has already changed all marketing materials for the Watch Series 9 and Ultra 2 in its US stores. To be more precise, the company has removed all images and products from the shelves.
Apple Watch Series 9 and Watch Ultra 2 still have a chance to continue selling before the ban takes effect
In case the President does not veto, Apple can appeal to the US Federal Court of Appeals, and this process is expected to take a long time. Looking back, it is quite normal for the head of the US not to veto the import ban issued by the ITC. In 2013, the then President Barack Obama vetoed the ban on products including iPhone 3GS, iPhone 4, iPad 3G, iPad 2 3G, iPad 3 sold by AT&T after Apple was found to have infringed on Samsung's patents.
According to Bloomberg, Apple engineers are racing against time to change the algorithm used to measure blood oxygen levels - the key to this copyright lawsuit - on the two Watch Series 9 and Ultra 2 models to avoid violating Masimo's intellectual property rights. This technology is used to measure the level of oxygen in the blood to make sure the lungs are able to provide this element to the body.
But the patents that led to the ban are mostly hardware-related, including a patent for technology that emits light from the wearer’s skin to measure blood oxygen levels. Apple has the option to turn this feature off, but it’s certainly not an option the company wants to take.
Apple patents technology from Masimo to clear ban
Another tactic that Apple could use to get around the ban would be to settle with Masimo to license the technology. But again, that’s not the way Apple wants to go. According to Bloomberg, the two companies have not yet sat down to discuss a deal or resolve the issue.
Earlier this week, Apple said, "If the ban is upheld, Apple will take every measure to get the Watch Series 9 and Watch Ultra 2 to customers in the United States as soon as possible." This suggests that Apple is not ready for a copyright negotiation with the company that has just pushed it into a legal battle.
On the other side, Masimo praised the ban as proof that "even the most powerful companies must follow the law." The case had an impact on investors, with Apple shares falling 1%, while Masimo rose as much as 3.2%.
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