Biden administration decides not to overturn Apple Watch sales ban
The Joe Biden administration has chosen not to lift the ban on Apple Watch Series 9 and Ultra 2 sales in the US. To recall, the ban was a result of a patent disagreement between Apple and Masimo. The International Trade Commission (ITC) has verified that "Ambassador Katherine Tai decided not to reverse the ITC's determination" after thorough discussions. Consequently, Apple can't sell the affected watch models in the US, and third-party retailers are expected to deplete their stock soon.
Why latest Apple Watches are facing sales ban
In October, a court ruling found Apple guilty of infringing on Masimo's patents related to blood oxygen pulse oximeter sensors. Starting December 21, Apple halted sales of its latest smartwatch models on its online retail stores. This decision was a response to the import ban issued by the ITC. The Biden Administration had a December 25 deadline to veto against ITC's ban order or not. It has now opted not to overturn ITC's order.
Third-party resellers can still sell remaining stock
Apple has been prohibited from selling the Apple Watch Series 9 and Ultra 2 in the US through both its online platform and physical stores. Third-party vendors can continue selling their existing inventory. Since the import ban affects all Apple Watch models that use the disputed SpO2 sensor, Apple will no longer be able to repair out-of-warranty models from Series 6 onwards. The Apple Watch SE is exempted from ITC's ban because it does not use that particular sensor.
Apple is working on software mitigations to bypass disputed patents
Masimo is showing a willingness to negotiate but Apple considers the patent rulings invalid and refuses to pay royalties. Apple intends to challenge the ITC's decision at the US Court of Appeals for the Federal Circuit. Meanwhile, the company is also working on software solutions that could bypass the disputed patents, allowing the affected smartwatches to return to store shelves. However, it might take some time for Apple to develop a software update and obtain legal approvals before resuming sales.
