Technology
Wednesday, December 27th, 2023 8:12 pm EDT
Key Points
- Temporary Lift of Import Ban: An appeals court’s decision has temporarily lifted the import ban on Apple’s latest Apple Watches, marking a significant victory for the tech giant. The ban, initiated by the International Trade Commission (ITC) in October, was a response to the alleged infringement of intellectual property owned by medical technology company Masimo. This development allows Apple to resume the sale of Series 9 and Ultra 2 watches, crucial for the company during the peak holiday season.
- Intellectual Property Dispute with Masimo: The ITC order stemmed from an intellectual property dispute between Apple and Masimo. The commission found that the blood oxygen sensor in Apple’s Series 9 and Ultra 2 watches had infringed on Masimo’s intellectual property. In response to the ban, Apple ceased the sale of the affected watch models, prompting an appeal filed with the U.S. Court of Appeals for the Federal Circuit. Despite the Biden administration’s decision not to pause the ITC ban, the appeals court granted a temporary stay on the Remedial Orders.
- Impact on Apple’s Sales and Stock: The temporary lift of the ban is crucial for Apple as it allows the company to continue selling its latest watch models, which are reported as part of Apple’s wearables business. This business segment recorded $39.8 billion in sales for Apple’s fiscal year 2023, ending in September. The article notes that the sales pause did not affect the Apple Watch SE, an older model without the contested blood oxygen monitoring feature. The impact on the stock market is also mentioned, with Masimo’s shares experiencing a more than 4% decline, while Apple’s stock saw a less than 1% decrease. An immediate comment from Apple representatives on the court’s decision is pending.
In a significant victory for Apple, an appeals court temporarily lifted the import ban on the latest Apple Watches, allowing the tech giant to resume sales. The ban was initially imposed by the International Trade Commission (ITC) in October following a finding that the blood oxygen sensor in Apple’s Series 9 and Ultra 2 watches infringed on intellectual property owned by Masimo, a medical technology company catering to hospitals.
Apple responded to the ITC order by halting the sale of the affected watch models. However, the recent decision by the appeals court grants a temporary pause to the ban, stating, “The motion for an interim stay is granted to the extent that the Remedial Orders are temporarily stayed,” as per a court filing on Wednesday. This development comes after the Biden administration declined to halt the ITC ban earlier in the week.
Apple lodged an appeal with the U.S. Court of Appeals for the Federal Circuit on Tuesday, with hopes of securing a more extended stay. The ITC is expected to respond to this appeal by January 10. The temporary reprieve is crucial for Apple, allowing the company to continue selling its latest watch models, particularly during the peak holiday season. Apple Watch sales contribute significantly to the company’s wearables business, which reported $39.8 billion in sales for fiscal year 2023, concluding in September.
Notably, the sales hiatus did not impact the Apple Watch SE, an older model lacking the blood oxygen level monitoring feature. Additionally, the latest Apple Watch models remained available through other retailers such as Best Buy or Amazon, as long as they had existing stock.
In response to the legal developments, Masimo’s shares experienced a decline of more than 4% during Wednesday’s trading. Conversely, Apple’s stock saw a comparatively minor decrease of less than 1%. As of now, no immediate comment has been provided by Apple representatives regarding the court’s decision.
This court ruling marks a crucial turn of events for Apple, allowing the company to navigate through legal challenges and continue selling its flagship wearable devices. The ongoing legal battle highlights the complex landscape of intellectual property disputes in the tech industry, where major players often find themselves entangled in legal conflicts over innovative features and technologies.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/12/27/apple-watch-import-ban-temporarily-stopped-by-us-appeals-court-.html
