In a significant victory for Apple, an appeals court has temporarily paused the import ban on the latest Apple Watches. The tech giant had stopped selling its Series 9 and Ultra 2 watches in response to an October order from the International Trade Commission (ITC). The order claimed that the devices’ blood oxygen sensor infringed on the intellectual property rights of medical technology company Masimo, which supplies hospitals. However, the court filing on Wednesday stated that “the motion for an interim stay is granted to the extent that the Remedial Orders are temporarily stayed.” This development allows Apple to sell the latest models of its popular smartwatches during a crucial time of the year.
The Flow of Events
Prior to the temporary stay, the Biden administration had chosen not to intervene in the ITC ban. In response, Apple filed an appeal with the U.S. Court of Appeals for the Federal Circuit on Tuesday, seeking a more extended stay. The court has provided Apple until January 10th for the ITC to respond. This pause in the ban presents an opportunity for the tech giant to continue selling its flagship wearables. Notably, Apple’s wearables business, which includes Apple Watch sales, reported a staggering $39.8 billion in sales in the fiscal year 2023.
No Impact on Older Models or Third-Party Retailers
It is worth mentioning that the ban only affected the latest Apple Watch models and not the Apple Watch SE, an older variant that does not possess the blood oxygen level feature. Additionally, during the ban, other retailers like Best Buy and Amazon still had the latest models available for purchase, provided they had stock. While this allowed some customers to obtain the new Apple Watches from alternative channels, the temporary stay offers a more streamlined path for consumers to access the devices directly from Apple.
Masimo, the company that alleged patent infringement by Apple’s blood oxygen sensor, experienced a significant drop in its share prices, falling over 6% during Wednesday’s trading. Conversely, Apple’s stock remained unaffected. This outcome suggests market confidence in Apple’s ability to navigate legal challenges and underscores its importance as a dominant player in the tech industry.
Despite the initial setback from the ITC ban, the temporary stay granted by the appeals court presents an optimistic outlook for Apple. The opportunity to sell the latest Apple Watches, especially during the holiday season, can boost the company’s revenue and solidify its position in the wearables market. As the battle over intellectual property rights continues, Apple’s ability to successfully navigate these legal hurdles showcases its expertise and resilience in a highly competitive industry.
The temporary pause on the import ban is a significant win for Apple. It allows the company to continue selling its latest Apple Watch models, ensuring availability during a critical time for consumer electronics. With the resolution of this legal dispute pending, Apple demonstrates its dedication to delivering innovative products while adhering to intellectual property regulations.