Apple has obtained a significant victory in a patent dispute with the medical technology company, Masimo. An import ban was imposed on some of Apple’s popular smartwatches. However, the US appellate court has temporarily lifted this ban. While this decision provides Apple with temporary relief, the final outcome could have serious financial consequences for both companies. It may result in a costly settlement or require Apple to find an alternative technological solution.
Masimo, who saw a nearly 4% drop in stock following this decision, now faces an uphill battle. Analysts expect that a key appellate case in January will be decisive in this ongoing patent battle.
In a concise four-paragraph statement, the appellate court announced that it would temporarily suspend the import ban while considering Apple’s request for an extension during the appeals process. The court has given the US International Trade Commission until January 10th to respond to Apple’s request.
Previously, President Joe Biden’s administration declined to intervene and veto the import ban, allowing it to take effect. However, Apple quickly requested a suspension of the ban on the same day. The company informed the court that the Customs and Border Protection agency is currently evaluating whether the redesigned versions of the watches infringe Masimo’s patents and can be imported. A decision from the customs agency is expected on January 12th.
Masimo has accused Apple of stealing its employees, pilfering pulse oximetry technology, and incorporating it into Apple Watches. The ban specifically targets Apple Watches that have the capability to read blood oxygen levels. Apple introduced this feature in the Series 6 model in 2020.
Thanks to the temporary relief, Apple can resume selling the Series 9 and Ultra 2 models in the United States. These models were temporarily halted last week due to the trade commission’s decision. However, the ban does not apply to the Apple Watch SE, which is a cheaper model without the pulse oximetry function. Previously sold Apple Watches are also not subject to the ban.
If the import ban remains in effect, it could result in significant financial losses for Apple. Analysts estimate that it could cost the company hundreds of millions to billions of dollars. Experts also predict that Apple will need to seek alternative technological solutions in future devices to maintain similar features without infringing on patents.
In addition to the ongoing patent dispute, Apple has separately sued Masimo for patent infringement in a federal court in Delaware. The company accuses Masimo of using legal tactics to pave the way for its own competing smartwatch.
According to the report from Apple’s Wearables, Home, and Accessories division, which includes the sales of Apple Watches, AirPods, and other products, it generated $8.28 billion in revenue in the third quarter of 2023.
In summary, Apple has received temporary relief from the import ban on its smartwatches thanks to the intervention of the US appellate court. The final decision in this patent dispute with Masimo could have significant financial consequences for both parties involved.
The source of the article is from the blog cheap-sound.com