Rewritten Article:
4 Pivotal Details Unveiled in Apple's Watch Legal Battle
In a surprising turn of events, Apple announced on Monday that it would halt the sale of specific versions of its best-selling smartwatch from the end of this week, potentially setting the stage for one of the most significant patent disputes in recent times.
The radical move to pull a popular item from shelves stems from a recent ruling by the International Trade Commission, which found that Apple had violated Masimo's pulse oximeter patent. The technology uses light to measure oxygen levels in the blood, a method Apple introduced with the Apple Watch Series 6's pulse oximeter feature.
With the possibility of being prohibited from selling these models, Apple may need to make significant changes to the Apple Watch or might see the ban lifted during the President's review period, which ends on December 25th. While Apple shared that "if the ruling stands, preventive measures will be taken to comply," it didn't specify the exact steps it would take.
Here are the must-know facts:
Which models are at risk?
As reported by CNN, the Apple Watch Series 9 and the Apple Watch Ultra 2 will no longer be sold on Apple's U.S. website from Thursday and in retail stores after December 24th, according to Apple.
Though other models will initially remain available, if the import ban is approved, other versions, such as the Apple Watch Series 6 and higher, as well as all Apple Watch Ultra models, could become challenging to obtain. Apple confirmed that the ban would not hurt sales of the Apple Watch SE. Certain retailers, such as Best Buy, said they still plan to sell them.
Apple said it would continue to take "all necessary steps" to provide the service to customers "as quickly as possible" if the order is upheld.
Why is Apple acting this way?
Apple decided to withdraw a beloved product due to an ongoing dispute with Masimo over its blood oxygen feature. Apple typically positions its smartwatches as lifesaving devices, helping it become the world's most popular watch. However, the ongoing conflict with Masimo might undermine this reputation.
Just over two months ago, the ITC ruled that multiple Apple Watch models violated Masimo's pulse oximeter patents, triggering a review period during which Apple had the chance to seek a license agreement with Masimo or contest the ban.
Joe Kiani, Masimo's CEO, spoke with CNN, expressing openness to both a licensing agreement and settling the dispute amicably.
Meanwhile, Apple asserts that the ITC's findings are incorrect and should be overturned, as it plans to appeal the decision in court and also presented evidence showing how the ban could negatively impact healthcare, scientific research, and Apple Watch users who rely on electrical heart rate, blood oxygen saturation, and other health-related functionalities. Pulse oximeters are particularly beneficial for individuals with various health issues, including asthma, lung cancer, and heart failure.
Kiani regarded removals of the devices as the latest development in the ongoing patent battle, while Masimo argued in court earlier this year that Apple had poached over 20 employees before launching its medical smartwatch W1 in May 2022.
Why is President Biden involved?
President Biden has 60 days to review the ITC's decision before a ban can be enforced. This is not the first time President Biden has intervened in Apple's patent-related matters.
In 2013, then-President Obama overturned an ITC decision that banned older iPhones and iPads, claiming that Apple had violated Samsung's patent. Such overturning of ITC's decision was a rare event, occurring for the first time in over 25 years.
Is this significant for Apple?
According to Jitesh Ubrani, Research Manager at IDC, Apple's reputation is at risk. "This doesn't look good," said Ubrani. "It could impact Q1 sales, but no one wants to be found guilty by association—even for patent violations."
Ubrani pointed out that Apple's decision to withdraw the devices before the review period ends is likely an attempt to "inform people better."
He added, "It shows they're doing everything they can to comply with the laws while remaining financially responsible."
As for sales, analyst David McQueen from ABI Research predicts that Apple's sale extension to December 24th will help mitigate financial effects and give buyers a few extra days to purchase the watches before the end-of-year festivities.
Although Apple leads the market with a 24% market share, McQueen believes the impact may be minimal assuming inventory remains available, potentially allowing Apple to boost Q4 sales before the ban goes into effect.
Apple sold 49 million smartwatches in 2022 and almost 26.7 million in the first nine months of 2023.
"It will be interesting to see how long this dispute continues," McQueen concluded, "or when Apple decides to open its wallet and gets the ban lifted."
Related Reading:
Source:
The patent controversy between Apple and Masimo centers around Apple's incorporation of pulse oximeter technology into the Apple Watch. Masimo, a firm focusing on pulse oximetry technology, has filed a lawsuit against Apple for patent infringement, asserting that Apple's implementation of pulse oximetry technology in Apple Watch infringes on Masimo's patented pulse oximetry technology[3][4].
Enrichment Data:
The patent dispute involving Apple and Masimo involves Apple's integration of pulse oximeter technology in the Apple Watch. Masimo, a company specialized in pulse oximetry technology, has filed a lawsuit against Apple for patent infringement related to this feature. In fact, Masimo claims that Apple's implementation of pulse oximetry technology in the Apple Watch infringes upon Masimo's patented pulse oximetry technology[3][4]. This dispute is part of a broader context where Masimo has been actively pursuing legal action to protect its intellectual property in the field of continuous glucose monitoring and pulse oximetry[4].
