US appeals court halts Apple Watch ban, marking Apple’s win.

Following a dispute with medical-tech firm Masimo, the US government commission prohibited the import and sale of certain smartwatches.

On Wednesday, Apple secured a win as a US appeals court temporarily halted a government commission’s import ban on specific Apple smartwatches amid a patent dispute with medical-technology firm Masimo.

The technology behemoth urgently sought a pause from the US Court of Appeals for the Federal Circuit, contesting the US International Trade Commission’s (ITC) ruling of patent infringement against Masimo.

Apple and Masimo spokespeople did not promptly reply to comment requests. The appeals court, in a concise four-paragraph decision, announced the suspension of the ban pending further consideration of Apple’s motion for an extended pause during the appeals process. The court stipulated that the ITC must provide a response to Apple’s request by January 10.

On Tuesday, the Biden administration opted not to veto the ban, allowing it to go into effect. Later that day, Apple requested a temporary suspension of the ban.

Masimo alleges that Apple recruited its employees, appropriated its pulse oximetry technology, and integrated it into Apple Watches. The ITC prohibited the import and sale of Apple Watches equipped with technology for measuring blood-oxygen levels. Apple introduced a pulse oximeter feature in its smartwatches, starting with the Series 6 model in 2020.

While Apple has halted sales of its Series 9 and Ultra 2 smartwatches in the US, these watches remain available through other retailers such as Amazon, Best Buy, Costco, and Walmart.

The prohibition does not impact the Apple Watch SE, a more affordable model lacking a pulse oximeter. Previously sold watches are also unaffected by the ban.

A jury trial in a California federal court regarding Masimo’s claims against Apple ended in a mistrial in May. Apple, in turn, has sued Masimo for patent infringement in a federal court in Delaware, characterizing Masimo’s legal actions as a strategic move to pave the way for its own competing smartwatch.

According to a company report, Apple’s wearables, home, and accessory business, which encompasses the Apple Watch, AirPods earbuds, and other products, generated $8.28 billion in revenue during the third quarter of 2023.

Following the decision, Masimo shares experienced an almost 5% decline, while Apple shares remained nearly unchanged.