Apple Watch Now Available for Sale in the US...Appeals Court Initially Rules in Apple's Favor

Apple has been allowed to continue selling the Apple Watch in the United States despite import restrictions due to a patent infringement dispute. This comes after the U.S. Federal Circuit Court of Appeals decided to temporarily suspend the International Trade Commission (ITC)'s import ban order while the lawsuit is ongoing, following Apple's appeal.

[Image source=AFP Yonhap News]

On the 27th (local time), the U.S. Federal Circuit Court of Appeals announced in its ruling that the ITC's import ban on Apple Watch products would be suspended during the appeal process.

This decision came just one day after the Biden administration upheld the ITC's ruling to ban imports of certain Apple Watch models, and Apple immediately filed an appeal. Previously, in October, the ITC ruled that Apple infringed on the blood oxygen measurement technology patent held by medical technology company Masimo, ordering a ban on the import of Apple Watch models containing this technology into the U.S. The day before, President Biden confirmed the import ban decision based on a review by the U.S. Trade Representative (USTR).

Since the Apple Watch is manufactured outside the U.S., including in China, this effectively amounted to a ban on sales in the U.S. Apple had already suspended both online and offline sales of the Apple Watch Series 9 and Apple Watch Ultra 2 related to the patent dispute starting last week, before the government decision was announced.

However, with the court siding with Apple on its appeal, Apple Watch sales are expected to resume within the next few weeks. Apple requested that the U.S. Customs and Border Protection determine whether it infringed Masimo’s patents and that the import ban be temporarily suspended during the ongoing litigation. In response, the ITC opposed Apple’s request and asked for sufficient time to respond. The court set a deadline of January 10 next year for the ITC to submit its response to Apple’s request.

The market views this as a victory for Apple in the legal battle. Wedbush Securities analyst Dan Ives said, "Considering the legal issues surrounding this patent dispute, this is a major win for Apple that many did not expect," adding, "Masimo now faces a big fight ahead." The Wall Street Journal (WSJ) reported that Apple received a temporary reprieve for its $18 billion smartwatch business. The outlet noted that while Apple Watch accounts for only about 5% of Apple’s total revenue for fiscal year 2023, it plays a crucial role in the growing healthcare business segment.

Bloomberg reported that Apple has developed a software update for the Apple Watch related to the patent infringement dispute and submitted it to U.S. authorities the day before. The U.S. government is scheduled to decide on approval by January 12 next year.