Mikele Bicolli
Dec 18, 2023
Featured

Apple to Halt Sales of Apple Watch Series 9 and Ultra 2 in the US Following ITC Ruling

ITC Litigation

 

In a groundbreaking move reported by 9to5Mac earlier today, Apple has officially announced the imminent cessation of sales for its flagship Apple Watch models, the Series 9 and Ultra 2, within the United States.

This decision comes hot on the heels of an International Trade Commission (ITC) ruling that stems from an ongoing and protracted patent dispute between Apple and medical technology powerhouse, Masimo, specifically revolving around the blood oxygen sensor technology embedded in the Apple Watch.

Apple has confirmed that the sales for the Apple Watch Series 9 and Ultra 2 will cease on its website after 3 p.m. ET on Thursday, December 21, while in-store availability will conclude after December 24. This decision is a proactive step by Apple to comply with the ITC's ruling should it stand after the Presidential Review Period, set to expire on December 25.

Notably, the ban imposed by the ITC solely impacts the sales of the Series 9 and Ultra 2 due to their blood oxygen monitoring capabilities. However, the Apple Watch SE, lacking this specific sensor, remains unaffected and will continue to be available for purchase.

The ruling does not restrict the sale of these affected models from third-party retailers like Amazon and Best Buy at present, but it prevents their importation into the US after December 25, potentially impacting the availability of these models even in other retail channels.

Existing Apple Watch models already sold, equipped with the blood oxygen sensor, remain unaffected by this development. These devices will continue to function as usual, and the ITC's order also exempts service, repair, or warranty claims on units sold before December 25.

Apple provided a statement to 9to5Mac, expressing disagreement with the ITC's order and ensuring efforts to secure the availability of the affected models to US customers.

The dispute between Apple and Masimo has an intricate history, involving multiple lawsuits across different courts. The ITC ruling specifically relates to Masimo's claims of patent infringement by Apple's Apple Watch blood oxygen sensor technology.

Apple's wearables, including the Apple Watch, have become an integral part of its revenue stream, generating substantial earnings, as seen in the Q1 2023 holiday quarter, underscoring the impact of the device on both Apple and its supply chain economy.

The company contends that the ITC's decision could potentially harm suppliers and consumers and disrupt ongoing and future health studies reliant on Apple Watch data. Furthermore, Apple alleges that Masimo's litigation might be aimed at boosting the launch of its own smartwatch product, which is not a substitute for the Apple Watch.

While Apple plans to file an appeal on December 26, it emphasizes that the appeal won't prevent the sales and import ban of the affected models. There are various potential courses of action, including settlement, licensing agreements, or design modifications, which Apple might explore in the future.

The fate of the Apple Watch Series 9 and Ultra 2 in the US remains uncertain, contingent upon the resolution of this unprecedented situation. Apple assures its commitment to restoring availability to customers as soon as possible, pending the conclusion of the Presidential Review Period.

In a parallel lawsuit, Masimo accused Apple of patent infringement and trade secret misappropriation. However, the outcomes of these legal battles await further trials and reviews.

This landmark development could potentially reshape the landscape of wearable technology and intellectual property rights, impacting both companies and their customers in unforeseen ways. As the situation continues to unfold, both Apple and Masimo await the next steps in this high-stakes legal battle that could redefine the future of wearable health technology.

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