The U.S. International Trade Commission has issued an order that could lead to an import ban on Apple Watches. The Commission imposed the ban in response to a judge’s ruling that Apple had violated medical tech company Masimo’s patent rights by using its blood-oxygen reading technology in some versions of the Apple Watch.
The Decision Process
The ITC’s decision is not immediately effective; it now awaits President Biden’s approval. The White House will have 60 days to decide whether to veto the ruling. If the administration does not veto the ban, Apple Watches will face an import ban.
Apple also has the option to appeal the decision to the U.S. Court of Appeals after the presidential review period concludes.
Apple’s Response
Apple strongly disagrees with the ITC’s decision and claims to be the victim of theft by Masimo. The company has stated that Masimo is attempting to prevent U.S. consumers from accessing a potentially life-saving product while promoting its own watch that allegedly copies Apple.
Impact on U.S. Consumers
An import ban on Apple Watches could make them essentially unobtainable for U.S. consumers. Apple, known for manufacturing its products abroad, especially in low-wage Asian countries like China and Vietnam, may face significant challenges if the ban is implemented.
Other Lawsuits and Bans
Apple is also facing another patent-infringement lawsuit from medical tech company AliveCor. The ITC had previously issued an import ban in that case but suspended it due to concerns about the validity of AliveCor’s patents.
If the ban related to Masimo goes into effect, it is uncertain whether all versions of the Apple Watch will be affected. Masimo’s original complaint to the ITC refers only to the Apple Watch Series 6, released in 2020.
Apple’s Dominance in the Smartwatch Market
Apple has been the leading player in the smartwatch market since launching the Apple Watch in 2015. Estimates suggest that Apple sold over 50 million Apple Watches last year and generates almost $9 billion annually from Watch accessories.
