Apple filed an appeal Tuesday in an effort to overturn a ruling banning imports of Apple Watches because the tech giant infringed the patent rights of medical monitoring technology firm Masimo.
The U.S. International Trade Commission (ITC) issued an order that takes effect on Dec. 26 blocking imports and sales of Apple Watches that use blood oxygen-sensing technology covered by patents belonging to Masimo, which has also accused Apple of hiring away its employees.
Apple has used the technology in smart watches dating back to its Series 6 model in 2020, and the ruling blocked the import and sale of the Apple Watch Series 9 and Ultra 2. The Biden administration opted against vetoing the ruling, effectively allowing the restrictions to remain in place.
The Office of the U.S. Trade Representative (USTR) Katherine Tai released a statement noting that the ITC found Apple infringed two patents owned by Masimo and Cercacor Laboratories Inc., and that she declined to reverse the ITC’s ruling and would allow it to become final.
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"Since 2005, the Office of the United States Trade Representative has been delegated the President’s authority under Section 337 of the Trade Act of 1930 to review the ITC’s decision for a 60-day period," the USTR wrote. "After careful consultations, Ambassador Tai decided not to reverse the ITC’s determination and the ITC’s decision became final on December 26, 2023."
An Apple spokesperson confirmed to Reuters that the company has appealed the ITC’s import ban on Apple Watches to the U.S. Court of Appeals for the Federal Circuit, which is based in Washington, D.C., and specializes in patent law and other administrative issues.
"We strongly disagree with the USITC decision and resulting exclusion order, and are taking all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the U.S. as soon as possible," Apple said in a statement.
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While the USTR was still reviewing the ITC decision, Apple preemptively took steps toward compliance. Apple announced on Dec. 18 that it would pause sales of the Series 9 and Ultra 2 smartwatches on its website beginning on Dec. 21, while the company’s retail locations were to stop selling those watches after Dec. 24.
Although Apple has paused sales of the watches, Reuters reported that they remain available from some other retailers as of Tuesday, such as Amazon, Best Buy and Walmart.
Versions of the Apple Watch that don’t contain the blood oxygen sensor are unaffected by the patent dispute and can continue to be sold, such as the less expensive Apple Watch SE. Previously sold watches won’t be affected by the ban.
Analysts at Stifel said in a note, "Our litigation expert predicted that a potential Apple appeal would extend the ‘final’ ITC case verdict roughly another year."
A jury trial regarding Masimo’s allegations in a California federal court ended with a mistrial in May. Apple has separately sued Masimo for patent infringement in a Delaware federal court and has called Masimo’s legal actions a "maneuver to clear a path" for its own competing smartwatch.
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The last time a president vetoed an ITC ruling was in 2013, when the Obama administration overturned an import ban on Apple’s iPhones and iPads that arose due to a patent dispute with Samsung.
In February 2023, the Biden administration opted against vetoing a separate import ban on Apple Watches based on a patent infringement complaint from medical technology firm AliveCor. The ITC placed the ban on hold for other reasons.
FOX Business has reached out to Apple and Masimo for comment.
Reuters contributed to this report.
