Apple is banned from selling Watch Series 9 and Watch Ultra 2 to the US market after the administration of President Joe Biden refused to grant an exemption from the decision by a trade tribunal that Apple had violated a patent owned by another company.
Apple announced on Tuesday that they had appealed the previous ruling of the US International Trade Commission. The dispute stemmed from a patent dispute between Masimo and Apple.
The Biden administration was given 60 days to decide if it would allow the ITC’s decision to become effective. Katherine Tai, the US Trade Representative was given the authority by the White House of deciding whether or not to intervene.
In a Tuesday statement, Tai’s office stated that “after careful consultations the ambassador Tai decided to not reverse the ITC’s determination. The ITC’s decision will become final on the 26th of December 2023.”
Masimo said in a press release that the ITC decision was “a significant moment for US as a protector and defender of innovators’ rights”.
Apple issued a statement in which it said that the ITC’s exclusion order was unacceptable and that they were “taking all necessary measures” to get the Apple Watch Series 9 or Apple Watch Ultra 2 back to their customers as quickly as possible.
Apple announced that it would stop preemptively selling the affected models on its website in the US from December 21 and in stores starting December 24.
The White House rarely gets involved in such cases. However, the Obama administration did veto a patent prohibition on iPhones and iPads during the legal dispute between the company and Samsung.
Apple is suffering a sales slowdown this year. Apple Watches older models are still available in the US. The company also said that the ban will not affect service for those who already own the newer models.
The case stems from a legal dispute between Apple and Irvine, California-headquartered Masimo over the patent on the technology for measuring blood oxygen levels on the devices. The pulse oximetry method measures oxygen levels in the blood through the wrist by shining a light.
Apple introduced the technology for the first time in 2020 in order to attract more customers and to give them an incentive to upgrade their devices with the new features. Masimo claimed that Apple copied their patented technology.
The ITC decided in Masimo’s favor, issuing an “exclusion order limited” against Apple’s products.
Masimo sued Apple separately in federal court, alleging violations of trade secrets. In May, a trial in this case ended in a hung verdict.
Apple is also embroiled in a similar lawsuit with AliveCor, a medical wearables manufacturer over heart rate monitoring technologies on its watches. The ITC upheld the judge’s ruling in December 2022 that Apple had violated AliveCor’s patent.
The US Patent Trial and Appeal Board invalidated AliveCor’s patent in the middle of the dispute that month, delaying any possible ban pending further appeals.