Apple is facing a legal challenge from Masimo, a medical device company that claims Apple copied its patented technology for measuring blood oxygen levels on the Apple Watch Series 9 and the Apple Watch Ultra 2. Masimo has obtained an Exclusion Order from the International Trade Commission (ITC) that bans Apple from selling the infringing watches in the U.S. market. However, Apple has appealed the order and is awaiting a decision from the U.S. Court of Appeals for the Federal Circuit that could come as early as today.
The pulse oximeter is a feature that allows users to monitor their blood oxygen saturation, which can indicate their health and wellness. It is especially useful for people who suffer from conditions such as sleep apnea, asthma, or COVID-19. The feature was introduced by Apple on the Apple Watch Series 9 and the Apple Watch Ultra 2, which were launched in September 2020 and October 2020, respectively.
Masimo alleges that Apple infringed on one of its five patents that cover the pulse oximeter technology. Masimo also accuses Apple of poaching its key employees and using its confidential information to develop the feature. Masimo filed a lawsuit against Apple in January 2020 and sought an injunction to stop Apple from selling the watches.
In January 2021, an ITC judge ruled in favor of Masimo and found that Apple violated one of Masimo’s patents. The judge issued an Exclusion Order that prohibited Apple from importing, selling, or distributing the Apple Watch Series 9 and the Apple Watch Ultra 2 in the U.S. The order was supposed to take effect in February 2021, but Apple appealed the ruling and obtained a temporary stay from the U.S. Court of Appeals for the Federal Circuit. This allowed Apple to continue selling the watches until the appeals court makes a final decision.
According to a report by 9to5Mac, Apple has submitted a redesign of the watches to the U.S. Customs and Border Protection to comply with the Exclusion Order. The redesign consists of disabling the pulse oximeter feature on the new units of the watches. Masimo has confirmed this in a statement released earlier today:
“On Friday, January 12, the Exclusion Order Enforcement Branch (EOE) of U.S. Customs and Border Protection decided that Apple’s redesign falls outside the scope of the remedial orders in the ITC Investigation underlying Apple’s appeal. In Apple’s request under 19 C.F.R. Part 177 (in a portion it did not identify as confidential), Apple explained ‘that its Redesigned Watch Products definitively (i) do not contain pulse oximetry functionality…’ Because Apple has maintained that certain information in the EOE proceeding is confidential, Masimo does not provide a copy of the decision with this letter. Currently, no public version of the decision exists.”
This means that Apple can sell the new units of the watches without the pulse oximeter feature in the U.S. However, this does not affect the existing units of the watches that have already been sold or are in stock. Those units will still have the pulse oximeter feature enabled and functional. Apple has not commented on the redesign or the status of the appeal.
The appeals court is expected to rule on whether Apple can continue to sell the watches with the pulse oximeter feature while the appeal is pending. If the court lifts the stay and upholds the Exclusion Order, Apple will have to stop selling the watches with the pulse oximeter feature or negotiate a license agreement with Masimo. If the court extends the stay and reverses the Exclusion Order, Apple will be able to resume selling the watches with the pulse oximeter feature without any restrictions. The court’s decision could be announced as soon as today.