Apple Wins Case Against Apple Watch Import Ban at US Trade Tribunal

• Apple redesigned its Series 9 and Ultra 2 watches to display blood-oxygen data on associated devices like iPhones rather than on the watch itself, avoiding patent infringement after an initial import ban in December 2023
• The dispute stems from Masimo's accusations that Apple hired away its employees to steal pulse-oximetry technology, part of a six-year legal battle between the companies
• Masimo can appeal the ITC decision to the U.S. Court of Appeals for the Federal Circuit and has separate ongoing litigation against Apple in California federal court for patent infringement and trade-secret theft

SUMMARY

The U.S. International Trade Commission (ITC) ruled in favor of Apple on April 17, rejecting medtech company Masimo's attempt to reinstate an import ban on Apple Watches. The decision follows an ITC judge's determination that Apple's redesigned watches do not infringe on Masimo's blood-oxygen reading technology patents.

Key Developments:

The ITC originally banned Apple's Series 9 and Ultra 2 smartwatches in December 2023 after finding patent infringement. To circumvent the ban, Apple removed blood-oxygen reading technology from the devices. In August, Apple reintroduced the feature with U.S. Customs and Border Protection approval, modifying the design so health data displays on associated devices like iPhones rather than on the watch itself.

Legal Background:

The dispute stems from Masimo's allegations that Apple hired its employees to steal pulse-oximetry technology. The companies have been engaged in a six-year legal battle across multiple venues. Masimo, now owned by Danaher, won a $250 million verdict against Apple in a November patent trial in California federal court, which Apple plans to appeal. Masimo has also challenged Customs' approval of the redesigned watches and filed separate lawsuits for patent infringement and trade-secret theft.

Market Implications:

The ruling allows Apple to continue offering blood-oxygen monitoring features to customers, preserving a key health functionality that differentiates its smartwatch lineup. Masimo can appeal the ITC decision to the U.S. Court of Appeals for the Federal Circuit. A Masimo spokesperson declined to comment, while Apple stated nearly all of Masimo's claims have been rejected.