The embargo applies to most Apple Watches released after 2020, including the Series 6, 7, 8, and Ultra, as well as the 9 and Ultra 2. All of these devices have challenged blood oxygen patents. Apple Watches were banned from US imports on Tuesday.
The US International Trade Commission (ITC) banned Apple Watch models in October for using a proprietary blood-oxygen monitoring technology. Apple claims the ITC verdict was wrong and should be ignored. However, US sales of the Apple Watch Series 9 and Ultra 2 ended last week. The iPhone maker also said it will appeal to a US federal court. The Apple shop online shop changed on December 21, while retail sales ended on December 24. Below, we investigate how the embargo will affect customers and Apple.
Why Was a Ban Enforced?
Apple was ordered by the US International Trade Commission to cease importing and selling Apple Watches in October in response to a complaint lodged by Masimo, a medical-monitoring technology company. A federal agency responsible for resolving international trade disputes, the ITC, has concluded that a blood-oxygen reading function on the Apple Watch violates Masimo’s pulse oximetry patents. On December 25, the Obama administration was granted sixty days, or until that date, to veto the order on the grounds of public policy concerns; however, it elected not to do so.
What Charges Have Been Levied Against Apple?
After discussing a potential collaboration, Masimo, which introduced a watch that monitors blood-oxygen levels and other health indicators and analyses them, accused Apple of copying its technology and luring away its employees. In May, a jury trial in California federal court regarding Masimo’s allegations was deemed a mistrial; a retrial has not been scheduled as of yet. Aside from Apple and its “affiliated companies, parents, subsidiaries, or other related business entities,” other retailers selling Apple Watches may remain unaffected by the ban.
Apple, which has countersued Masimo in Delaware federal court for patent infringement, has characterized the legal actions of Masimo, headquartered in Irvine, California, as an attempt to pave the way for its competing smartwatch.
What Is the Impact on Apple Watch Sales in the United States?
Apple, based in Cupertino, California, said on December 18 that it would stop US sales of its most high-end Series 9 and Ultra 2 models before Christmas Day. The ITC’s ruling does not impact Apple’s cheaper Apple Watch SE, which lacks pulse-oximetry. The ITC judgment claims that it is restricted to Apple Watches with light-based pulse oximetry, although it does not specify which models are affected. Series 6 watches were the first with pulse oximetry, and Masimo claims all Apple Watches with it infringes its patents. Apple also stopped replacing out-of-warranty Series 6 devices due to the limitation. Not including Apple and its “affiliated companies, parents, subsidiaries, or other related business entities,” other Apple Watch merchants may be exempt. Apple Watch Series 9 was still available at Amazon, Best Buy, and Walmart on December 26.
What Does This Imply for the Customers?
Apple told its customer care staff by memorandum that out-of-warranty Apple Watch Series 6 items in the US would no longer be replaced. Due to this change, Apple’s replacement service will no longer fix display issues on certain models. However, software support, including OS reinstallation, will remain available. Apple will prohibit pre-moratorium watch swaps, including color or size adjustments, during the return period.
The ruling affects most new Apple Watches sold since 2020, including the Series 6, 7, 8, and Ultra, as well as the 9 and Ultra 2. All of these devices have challenged blood oxygen patents.
The replacement restriction does not apply to pre-ban timepieces or devices under warranty. The usual watch warranty is one year, but AppleCare may extend it. The US tribunal’s ruling won’t affect Apple Watch sales in India.
What Are Apple’s Current Options?
The moratorium is anticipated to be appealed by Apple to the United States Court of Appeals for the Federal Circuit in Washington. The ITC denied Apple’s request to halt the suspension pending an appeal on December 20. Reportedly, Apple is also developing software modifications that will allow its devices to function without violating Masimo’s patents. Should the remedy be approved by US Customs and Border Protection, the company may recommence the import and sale of the timepieces. According to Masimo, its patents pertain to hardware, and a software patch would need to be more effective. CEO of Masimo, Joe Kiani, has also expressed a willingness to negotiate a resolution to the dispute.
