The United States International Trade Commission’s import ban on the Apple Watch Series 9 and Apple Watch Ultra 2 has become final. The Biden administration has announced that it will not reverse the ban.
The Office of the United States Trade Representative announced that after “careful consultations” it would not reverse the ITC’s decision.
“On October 26, 2023, the U.S. International Trade Commission found that Apple, Inc. infringed two patents owned by Masimo Corporation and Cercacor Laboratories, Inc, both based in the United States. Since 2005, the Office of the United States Trade Representative has been delegated the President’s authority under Section 337 of the Trade Act of 1930 to review the ITC’s decision for a 60-day period. After careful consultations, Ambassador Tai decided not to reverse the ITC’s determination and the ITC’s decision became final on December 26, 2023.”
Apple told Reuters said that it is “taking all measures” to get the Apple Watch Ultra 2 and Apple Watch Series 9 back on store shelves as soon as possible.
The Cupertino firm has filed an appeal with the U.S. Court of Appeals for the Federal Circuit in Washington.
The U.S. International Trade Commission (ITC) ordered a ban on Apple Watch imports into the country. The ban follows a ruling by the ITC that Apple had violated pulse oximetry patents held by Masimo.
Masimo in 2020 claimed Apple stole Masimo employees and stole trade secrets while the Cupertino firm was developing the Apple Watch. Masimo was seeking over $1.8 billion in damages and co-ownership of five Apple pulse oximetry patents that Masimo said used its technology.
Apple did indeed hire employees away from Masimo, hiring Chief Medical Officer Michael O’Reilly in July 2013, and then in 2014, it hired Cercacor Chief Technical Officer Marcelo Lamego (Cercacor is a Masimo spinoff company). Masimo claims that the two former employees shared Masimo’s intellectual property when they developed the Apple Watch, which Apple denies.
Apple engineers are reported to be “racing” to make changes to algorithms on the Apple Watch that measure a user’s blood oxygen level — a feature that Masimo Corp. has argued infringes its patents.
The sales ban only applies to Apple Watch models with a blood oxygen sensor, so the Apple Watch SE is still available for sale. The ban also only applies to Apple retail store sales in the United States, so all Apple Watch models continue to be available in other countries.
Other retailers in the United States, such as Walmart, Target, Best Buy, and others, can continue to sell all Apple Watch models until their supplies run dry. However, once their inventories run dry, Apple cannot import any more units into the U.S. from overseas.
As for what’s next, Apple is barred from selling the Apple Watch Series 9 or the Apple Watch Ultra 2 unless the appeal is successful, a settlement is reached with Masimo, or Apple engineers find a new way to use the blood oxygen sensor without stepping on Masimo’s patents.