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Technology

Technology

Apple can temporarily sell smartwatches after US appeals court win

An Apple smartwatch is displayed as customers visit the Apple store in New York, U.S., December 26, 2023. REUTERS/Eduardo Munoz
An Apple smartwatch is displayed as customers visit the Apple store in New York, U.S., December 26, ... An Apple smartwatch is displayed as customers visit the Apple store in New York, U.S., December 26, 2023. REUTERS/Eduardo Munoz
An Apple smartwatch is displayed as customers visit the Apple store in New York, U.S., December 26, 2023. REUTERS/Eduardo Munoz
An Apple smartwatch is displayed as customers visit the Apple store in New York, U.S., December 26, ... An Apple smartwatch is displayed as customers visit the Apple store in New York, U.S., December 26, 2023. REUTERS/Eduardo Munoz

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Apple can temporarily sell smartwatches after a US appeals court win. After a government commission’s import ban on the devices was issued in a patent dispute over Apple’s medical monitoring technology, a U.S. appeals court on Wednesday suspended the restriction, allowing Apple (AAPL.O) to continue sales of its flagship smartwatches. This decision allows Apple to resume sales of its smartwatches for now.

The tech giant submitted an emergency motion asking the United States Court of Appeals for the Federal Circuit to overturn an ITC (International Trade Commission) order. The ITC had found that Apple had violated the patents of Masimo (MASI.O.), which is situated in Irvine, California.

Experts say a final ruling might cost either firm millions of dollars. It could ultimately compel Apple to reach a settlement or find a technological solution. They contend that the negative publicity the case generates will likely outweigh any potential financial loss for Apple in the long run.

Immediately after the judgment on Wednesday, Masimo shares finished the day 4.6% down at $115.11, while Apple shares finished the day unchanged at $193.15.

“We are thrilled to return the full Apple Watch lineup to customers in time for the new year,” Apple stated in a statement shortly after the new year’s release. “Apple Watch Series 9 and Apple Watch Ultra 2, including the blood oxygen feature, will become available again in the United States at Apple Stores starting today and from apple.com tomorrow by noon PT.”

Regarding the ruling made by the court, Masimo chose not to comment.

The International Trade Commission (ITC) forbade the import and sale of Apple Watches that could measure blood oxygen levels. An integrated pulse oximeter was incorporated into Apple’s smartwatches, beginning with the Series 6 model released in 2020.

According to Masimo, Apple has been accused of stealing its pulse oximetry technology and putting it into Apple Watches. Masimo also claims that Apple has hired away its personnel. Apple has responded to Masimo’s legal efforts by filing a countersuit, describing them as a “maneuver to clear a path” for Apple’s competing smartwatch system.

It is just a matter of time until Apple develops its relatively simple blood-monitoring software. According to Stuart Cole, chief macroeconomist of Equity Capital, “the software development costs are not something that will be something that will be too concerning for a company as wealthy as Apple.”

“The more significant problem is that this is not very good public relations for Apple, as it gives the impression that Apple is taking technology from its rivals rather than developing its technological solutions. According to him, Apple is defending this case more with an eye toward what it signifies for their future health-wearable goods than a particular piece of software that monitors blood oxygen levels.

The Court of Appeals issued a verdict on Wednesday that stated it would postpone the ban while it evaluated Apple’s application for a longer-term stay during the appeals process. The ruling was brief and consisted of four paragraphs. Regarding Apple’s motion, the court has given the ITC until January 10th to respond.

On Tuesday, the administration of Vice President Joe Biden of the United States of America decided not to exercise its veto power on the ban, which means it will now go into force. Later on the same day, Apple demanded that the restriction be temporarily halted.

Apple has said it is working on various legal and technical solutions.

The firm informed the court on Tuesday that the United States Customs and Border Protection is discussing whether its watches violate Masimo’s patents and whether or not they are allowed to be imported. According to Apple, the customs department has decided to set January 12th as its goal date.

Apple halted sales of the impacted devices from its website and retail locations in the United States last week due to the International Competition Commission (ITC) ruling. Retailers such as Amazon (AMZN.O.), Best Buy (BBY.N.), Costco (COST.O.), and Walmart (WMT.N.) continued to stock them in their inventory.

The restriction is unaffected by the Apple Watch SE because it is a less expensive device with a pulse oximeter. In addition, timepieces that had been sold in the past were exempt from the limitation.

The charges Masimo had made against Apple in a federal court in California had been tried by a jury, but the trial had been declared a mistrial in May.

According to a firm study, Apple’s wearables, home, and accessories division, which includes the Apple Watch, AirPods earphones, and other items, took in a total of $8.28 billion in sales during the third quarter of 2023.


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