What Happens Now That The US Has Banned Imports Of Apple Watches?

A ban limiting the amount of popular Apple Watches that may be imported into the US has gone into force. Here are some consumer implications of the prohibition as well as Apple’s future plans.

Why was there a ban?

Apple was ordered by the U.S. International Trade Commission in October to cease importing and selling Apple Watches in response to a complaint filed by Masimo, a company that makes medical monitoring technologies.

Masimo’s pulse oximetry patents are infringed by an Apple Watch feature that reads blood oxygen levels, according to the ITC, a federal commission that settles disputes involving international trade.

President Joe Biden’s administration had until December 25 to veto the order due to public policy concerns, but they choose not to.

How do Apple Watch sales in the US become affected?

Based in Cupertino, California Prior to the Christmas Day deadline, Apple declared on December 18 that it will proactively suspend sales of its most recent high-end Series 9 and Ultra 2 models in the United States. The less expensive Apple Watch SE, which is still available from Apple and lacks pulse oximetry functions, is unaffected by the ITC’s ruling.

The ITC ruling states that it only applies to Apple Watches that have the aforementioned light-based pulse oximetry functionality, although it makes no mention of which specific models are impacted. Pulse oximetry was originally included by Apple in their Series 6 watches, and according to Masimo, any Apple Watches that use this technique violate its patents.

In light of the prohibition, Apple said that it will no longer be replacing out-of-warranty watches older than Series 6.

Aside from Apple and its “affiliated companies, parents, subsidiaries, or other related business entities,” other merchants who sell Apple Watches might not be impacted by the restriction.

As of December 26, vendors including Amazon, Best Buy, and Walmart still had Series 9 Apple Watches in stock.

What charges are made against Apple?

After exploring a possible partnership, Masimo, which introduced a watch last year that also tracks other health indicators and measures blood oxygen levels, accused Apple of stealing its technology and hiring away its staff. A May mistrial on Masimo’s charges in a federal court in California resulted in a jury trial that has not yet been rescheduled.

Apple has countersued Masimo for patent infringement in Delaware federal court, claiming that Masimo, based in Irvine, California, is only using these legal efforts as a ruse to open the door for its rival wristwatch.

What choices does Apple now have?

The U.S. Court of Appeals for the Federal Circuit in Washington, D.C., is anticipated to hear Apple’s appeal of the prohibition. On December 20, the ITC denied Apple’s request to put the ban on hold while an appeal was pending.

It is also said that Apple is developing software updates so that its watches can function without violating Masimo’s patents. If the workaround is approved by U.S. Customs and Border Protection, it may be able to resume importing and selling the timepieces.

Masimo has stated that a software update would not be effective and that its patents cover hardware.

Joe Kiani, CEO of Masimo, has also shown his willingness to resolve the conflict.

(Adapted from Reuters.com)

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