US President Joe Biden’s administration has declined to veto the International Trade Commission (ITC)’s ban on the Apple Watch Series 9 and Ultra 2.
The Office of US Trade Representative Katherine Tai confirmed in a statement published on December 26 that “after careful consultations, Ambassador Katherine Tai decided not to reverse the ITC’s determination.”
As a result, Apple can no longer import and sell the infringing watches. The Apple Watch Series 9 and Ultra 2 are no longer available in Apple’s retail stores, with the company’s online store saying the devices are “currently unavailable.”
Biden administration not vetoing Apple Watch ban
“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 United States as soon as possible,” an Apple spokesperson said in a statement to CNBC.
The ITC recently ruled that the Apple Watch Series 9 and Apple Watch Ultra 2 infringe on medical monitoring technology Masimo’s patents related to the blood oxygen pulse oximeter sensor.
Best Buy, Target, Walmart and other third-party retailers can sell their remaining stock. The only model Apple is permitted to sell in the United States is the Apple Watch SE, which lacks a blood oxygen sensor.
Apple plans to appeal the ITC’s ruling to the US Court of Appeals for the Federal Circuit, but perhaps the company would better serve its customers by licensing Masimo’s blood oxygen saturation?
It would only be fair. After all, it did poach Masimo engineers and stole its technology. Apple should resolve this conflict sooner rather than later because it’s losing a lot of money by not selling those watches in the United States.
Will Apple settle with Masimo?
In the meantime, Apple hopes to circumvent Masimo’s patents by adjusting the algorithm that analyzes blood oxygen stats. Masimo is unconvinced, however, saying Apple stole not only its software but also the actual blood oxygen sensor hardware.
The fastest way for Apple to return the Apple Watch Series 9 and Ultra 2 on store shelves would be to settle with Masimo. The longer this ban is in effect, the more money Apple will lose in its most important market.