Redesigned Apple Watches not topic to import ban, U.S. Customs says

A U.S. regulation enforcement company has decided that Apple can use a redesign to bypass an import ban on newer Apple Watch fashions stemming from its patent infringement dispute with Masimo, the medical-monitoring know-how firm stated in a courtroom submitting on Monday.

The import ban, issued by the U.S. Worldwide Commerce Fee, applies to Apple’s present Sequence 9 and Extremely 2 watches and initially went into impact on Dec. 26. Apple persuaded the U.S. Courtroom of Appeals for the Federal Circuit to pause the ban the following day, and has since resumed promoting the watches because it contests the import ruling.

Apple had stated {that a} proposed redesign would enable it to bypass findings that the watches infringe Masimo’s blood-oxygen studying pulse oximetry patents.

Apple tells CNBC that it’ll promote Apple Watches with full performance, together with the oxygen sensor function, as appeals course of performs out over the approaching months. The corporate has not publicly described the redesign, which might contain an replace to the watches’ software program.

Based on Masimo’s submitting on Monday with the Federal Circuit, Apple instructed the U.S. Customs and Border Safety company that its redesigned watches “definitively do not contain pulse oximetry functionality.” Apple’s filings with U.S. Customs and the company’s choice, issued Friday, haven’t been launched publicly.

“Apple’s claim that its redesigned watch does not contain pulse oximetry is a positive step toward accountability,” a Masimo spokesperson stated on Monday.

Apple stated on Monday that Sequence 9 and Extremely 2 watches with blood-oxygen studying capabilities are nonetheless accessible.

Irvine, California-based Masimo has accused Apple of hiring away its workers and stealing its pulse oximetry know-how to make use of in Apple Watches after discussing a possible collaboration.

Apple has included a pulse oximeter function in smartwatches since its Sequence 6 Apple Watch in 2020.

Masimo sued Apple in California that yr, alleging that Apple stole commerce secrets and techniques associated to know-how for studying blood-oxygen ranges and infringed Masimo patents.

Apple countersued Masimo for patent infringement, calling Masimo’s authorized actions a “maneuver to clear a path” for a competing smartwatch. Masimo launched its W1 watch, which tracks blood-oxygen ranges and different well being indicators, in 2022.

Masimo requested the ITC in 2021 to bar Apple’s imports and gross sales of Apple Watches that allegedly infringed its patents. The ITC dominated for Masimo final yr and the ban went into impact in December.

Apple briefly stopped gross sales of its newest Sequence 9 and Extremely 2 watches in america earlier than Christmas as a result of ITC choice, although they remained accessible from different U.S. retailers together with Amazon, Best Buy, Costco and Walmart.

The tech large resumed promoting the watches Dec. 27 after the Federal Circuit stated it could pause the ban whereas it considers whether or not Apple’s attraction ought to put the ITC’s choice on maintain.

Apple stated on Monday that the attraction would doubtless take at the very least a yr, and that it expects a choice on its request to maintain the ban paused throughout that point as early as Tuesday.

The Federal Circuit continues to be contemplating whether or not to proceed the pause or reinstate the ban, which might apply to Sequence 9 and Extremely 2 Apple Watches with pulse oximetry know-how that don’t have the redesign.

Apple has argued that it’s more likely to win the attraction and that permitting the ban to remain in impact would trigger vital hurt to the corporate, its suppliers and the general public.

Masimo has stated that sustaining the pause would harm its enterprise and repute and “demoralize” its scientists and engineers. It additionally stated in its Monday submitting that the Customs choice undermines Apple’s argument that reinstating the ban would trigger the tech large irreparable hurt.

CNBC contributed to this report.