From Bad to Worse: Apple Takes Huge Hit In Court Controversy

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The legal battle between Apple and medical monitoring firm Masimo continues to escalate as the Federal Circuit Court of Appeals denied Apple’s bid to pause the ban on certain Apple Watches while their appeal of a trade court ruling is ongoing.

In a court filing on Wednesday, Masimo revealed that Apple’s redesigned Apple Watches can bypass the import ban if they exclude the blood oxygen sensor at the center of the patent dispute. This follows a decision by the U.S. International Trade Commission (ITC) last month to impose an import ban on the Apple Watch Series 9 and Ultra 2 after finding that their pulse oximeters infringed on Masimo’s patents.

Apple had initially appealed the ruling and obtained a temporary reprieve while U.S. Customs and Border Protection (CBP) determined whether the redesigned watches were covered by the import ban. However, attorneys for Masimo stated in a court filing that the CBP determined on Friday, Jan. 12 that Apple’s redesigned watches “do not contain pulse oximetry functionality” and therefore fall outside the scope of the ban.

The filing also noted that Apple has maintained that certain information from the exclusion order enforcement hearing is confidential, so no copy of the CBP’s decision was included in the filing or has been made publicly available.

In response, the Federal Circuit Court of Appeals denied Apple’s request to pause the ban during their appeal, which means that the company will not be able to import or sell the Series 9 and Ultra 2 Apple Watches that contain the blood oxygen sensors at the center of the dispute.

The legal battle between Apple and Masimo began in 2020 when Masimo accused the tech giant of stealing trade secrets related to technology for reading blood oxygen levels and infringing on its patents. In response, Apple countersued Masimo for patent infringement, claiming that their actions were a legal “maneuver” to promote their own competing smartwatch, the W1, which tracks blood oxygen levels and other health indicators.

Last year, Masimo asked the ITC to block imports and sales of certain Apple Watches that allegedly infringed on their patents, leading to the ITC’s ruling in favor of Masimo and the subsequent ban taking effect in December 2021. This prompted Apple to temporarily halt sales of the affected watches before their appeal was granted by the Federal Circuit Court of Appeals.

However, with the latest developments, Apple’s request for a stay has been denied and the import ban and halt on sales of the affected watches will remain in effect while their appeal of the ITC ruling plays out.

In response to the decision, a Masimo spokesperson highlighted the importance of Apple respecting the intellectual property rights of smaller companies and complying with ITC orders when caught infringing. They also praised Apple’s decision to redesign their watches to exclude the pulse oximetry technology, stating that it is a step towards accountability.

For now, the ban only affects the Series 9 and Ultra 2 Apple Watches that contain blood oxygen sensors. Versions of the Apple Watch that do not include this feature are unaffected and can continue to be sold without being redesigned.

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