Apple has announced a temporary halt to the sales of its Series 9 and Ultra 2 smartwatches in the United States due to an ongoing patent dispute over the technology enabling the blood oxygen feature. T
he move follows an October order from the U.S. International Trade Commission (ITC) that found Apple's devices violating medical technology company Masimo's patent rights, potentially leading to a ban on Apple Watch imports. The ITC ruling is currently under review by President Joe Biden until December 25, with a potential ban taking effect on December 26 if not vetoed.
To comply with the potential ban, Apple will pause sales of the affected watches from its website starting on December 21 and from retail locations after December 24. Models without the contested blood oxygen sensor, like the Apple Watch SE, remain unaffected.
IDC's Ryan Reith suggests that the impact on U.S. holiday sales will likely be felt in January and February, Apple's slower sales months.
Masimo CEO Joe Kiani expressed openness to negotiating a deal with Apple, emphasizing the importance of respecting intellectual property rights. Apple, which holds a significant share of the global smartwatch market, intends to appeal the ITC decision, believing it to be erroneous.
Masimo has accused Apple of stealing pulse oximetry technology, and a mistrial on these allegations occurred in May. Apple, in turn, has sued Masimo for patent infringement. The U.S. Patent and Trademark Office rejected Apple's requests to review the patents involved in the ITC decision.
In response to the potential ban, Apple is reportedly making algorithm changes in its smartwatches to address the disputed technology. The company is exploring legal and technical options, preparing for changes in stores, and submitting a workaround to the U.S. customs agency.
The situation is reminiscent of past patent disputes, and the Biden administration's decision on this matter will be crucial, as a presidential administration has not vetoed an ITC ruling since 2013.
