In a major win for tech giant Apple, an appeals court has temporarily paused an import ban on the latest Apple Watches. The ban was imposed by the International Trade Commission (ITC) in response to a finding that the devices’ blood oxygen sensor infringed on intellectual property from Masimo, a medical technology company. Apple had discontinued the sales of its Series 9 and Ultra 2 watches last week in compliance with the ITC order.
The U.S. Court of Appeals for the Federal Circuit granted Apple’s motion for an interim stay, temporarily halting the Remedial Orders set by the ITC. This decision allows Apple to resume selling its newest Apple Watch models, including during the lucrative holiday season. Apple, however, is seeking a longer stay and is waiting for a response from the ITC by January 10. The Biden administration declined to pause the ban, contrasting with the appeals court’s verdict.
Apple’s wearables business, which includes Apple Watch sales, is a significant component of the company’s revenue. In the fiscal year 2023, ending in September, Apple reported a staggering $39.8 billion in sales from wearables. Therefore, the lifting of the ban comes as welcome news for the tech giant, enabling them to continue selling one of their most vital and lucrative products.
While the ban affected the latest Apple Watch models, it did not impact the sales of the Apple Watch SE, one of the earlier versions. The Apple Watch SE lacks the blood oxygen level reading feature, thus avoiding the infringement concerns raised by Masimo. Additionally, retailers such as Best Buy and Amazon continued to sell the latest Apple Watch models as long as they had stock available, despite the ban.
The announcement of the import ban pause had differing effects on the companies involved. Masimo, the medical technology company filing the intellectual property infringement claim, experienced a decline of over 6% in its stock value during Wednesday’s trading. In contrast, Apple’s stock remained relatively stable.
The temporary pause on the import ban of Apple Watches by the appeals court marks a significant legal victory for Apple. The decision allows Apple to resume the sales of its latest Apple Watch models, ensuring uninterrupted availability during the crucial holiday season. As the company’s wearables business plays a major role in its revenue, the lifting of the ban is an extremely positive development for Apple. However, the final outcome still hinges on the ITC’s response to Apple’s appeal in January.
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