2023 has been a year of long-drawn battle for Apple and it seems the fight isn’t going to end anytime soon. The company is on the verge of facing a ban on 2 of its popular products- Apple Watch 9 Series & Apple Watch Ultra 2. This is a result of the complaint filed by a medical tech company, Masimo Corp who has been alleging that Apple has been offering SpO2 sensor in its watches that infringes the patents owned by Masimo Corp.
Read on to know the entire matter and what Apple’s next course of action can be.
Apple Vs Masimo Corp: What went down
In 2020, medical tech company Masimo Corp filed a lawsuit against Apple claiming that Apple had infringed the patents of the blood oxygen sensor by using it in the Watch 9 Series and Watch 2 Ultra. The International Trade Commission reported about the same in 2021.
While requesting a ban on Apple Watches, Masimo Corp also claimed that a ban would not affect the public as the SpO2 sensor isn’t that important for the users. ITC took up the case in January 2023 and the ruling went in favor of Masimo Corp, which was the first step towards Apple watches facing a ban in the home country.
The judgment was followed up in October 2023 when ITC ordered a full review of the matter and until then barred Apple from importing any Watch models that might infringe Masimo’s patents. Since a full review was ordered, there has been a 60-day review period wherein the White House will have to come to a decision. When this was announced in October, an Apple spokesperson said, “Masimo has wrongly attempted to use the ITC to keep a potentially lifesaving product from millions of US consumers while making way for their watch that copies Apple. While today’s decision has no immediate impact on sales of Apple Watch, we believe it could be reversed, and we will continue our efforts to appeal.”
When this statement was given, Apple seemed to be pretty confident about getting the ban revoked, however, nothing like this has taken place so far.
Note- The text in “” is the official statement by Apple spokesperson
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Apple Watch Ban: What Can Happen Next
If the White House and Joe Biden find Apple to be guilty, then the ban on further import and already-imported Apple Watches will come into effect from Christmas day (25th December). It would hugely impact the business of the tech giant as the holiday period is the peak season for sales of such devices. Ban coming into effect will mean the Apple Watch 9 Series and Watch Ultra 2 will not sell in the US and many other countries.
If the White House rules against Apple, the company can appeal against the decision after the 60-day review period is over. Since the process of appeals is lengthy and drawn out, it will take loads of time for Apple to get the ban lifted, that is if it happens. If Apple appeals to the Federal Circuit, the ban might be held off until one more review takes place, but there are no guarantees.
If the decision is not contested, this ban will last till the patent expires in August 2028.
What is Apple doing to save $17 Billion Business?
The first course of action by Apple will be to appeal against the ban as the US is a very big market for the company. Meanwhile, Apple engineers have been working on tweaking the Watches itself so that the ban gets lifted.
Reports are strong that Apple engineers have been burning the midnight oil to modify the algorithm of the watches that use a blood oxygen level sensor. Apple always has the option of settling with Masimo, but the company most probably won’t go down that route. The company has been working on changing the algorithm of the products to get ITC’s approval.
Masimo claims that merely software tweaks won’t do and if Apple wants to get the ban lifted, the company has to change the watch at the hardware level. Currently, Apple is preparing various legal and technical workarounds. It has started promoting the banned models without images and also working on bringing hardware changes to the watches. This would mean removing the SpO2 sensor and re-launching the Watch 9 Series and Watch 2 Ultra with new design and specs. The process would take time as the brand would have to remove hardware, produce, and then ship new models. Not including the time taken to get the regulator’s approval, 3 months will be needed for Apple to produce and ship a new range of watches.
Current Status of Apple Watch Ban
Apple has planned to stop selling the banned models online on Thursday and they will be removed from physical stores by December 24. Apple has shared a statement with 9to5Mac, wherein the brand has informed that the Series 9 and Watch 2 Ultra will not be available for sale via online store in the US after 21st December or from the Apple retail stores in the US after 24th December. In other countries, the devices will continue to sell until further notice.
What does the SpO2 sensor do?
The blood oxygen level sensor was introduced on Apple Watches in 2020 with the Watch 6 Series. It offers constant monitoring of the user’s blood-oxygen levels 24 hours a day. The reading can be taken in 15 seconds and the ideal levels are 95%-100%.
Although Apple advised not using the readings of the monitor for health purposes, the devices came in handy during the COVID-19 pandemic as doctors used them to understand the impact of the virus on the person’s breathing.
There have been quite a few instances when Apple Watches have saved lives. In October 2022, Cleveland-based Ken Counihan was detected with a serious clot in the lungs after the SpO2 sensor on his Apple Watch alerted him of being a danger to his life. He could live only because the clot was detected in time.
Similarly, a 16-year-old on a ski trip was saved after the Watch detected his oxygen levels to be an alarming 66%. The boy was taken to the ER wherein it was found that the watch had detected almost accurate SpO2 levels, as his lungs were filled with fluid and he was suffering from High Altitude Pulmonary Edema which can lead to death if left unattended.
Implications of Watch Ban for Consumers
If the ban comes into effect, US consumers will have a very limited selection of Apple Watches to choose from. The ban will impact the Watch 6 series and later models. Apple Watch SE and earlier models will sell uninterrupted. The units that have been bought before Christmas day will be 100% legal and consumers can continue to use them uninterrupted.
Apple has confirmed that its warranties will continue as they are and the purchased devices will be serviced as usual if needed.
For now, Apple as well as the consumers are waiting with baited breath to know what the Joe Biden Committee decides before 25th December.
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Source- Bloomberg Report
