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Apple
has won a temporary reprieve from a U.S. government ban on the sale of some
Apple
Watch models.
The U.S. International Trade Commission in October found that Apple infringed two patents held by the medical technology company
Masimo
and a sister company called Ceracor Laboratories on sensors that measure blood oxygen levels. The ITC ruling covers both Apple Watch Series 9 and Apple Watch Ultra 2. That finding was subject to review by U.S. Trade Representative Katherine Tai. On Tuesday, Tai’s office issued a statement saying that “after careful consultations” she decided not to reverse the ITC determination.
Apple
immediately appealed that decision to the Federal Circuit court, which has the power to review ITC cases, and on Wednesday the court issued an interim stay on the ban while the court considers a motion for a further stay pending appeal. The court also granted a government request for a five-day extension until Jan. 10, to reply to Apple’s filing.
“The government is directed not to enforce the Remedial Orders until further notice while the court considers the motion for a stay pending appeal,” the court said in the two-page order.
Apple last week stopped selling Series 9 and Ultra 2 watches in advance of Tai’s final ruling. On Apple.com, both Series 9 and Ultra 2 watches as of Wednesday were still listed as “currently unavailable.” But the company said the affected watches went back on sale in Apple retail stores on Wednesday, and will be available on Apple.com again starting at noon Pacific time on Thursday.
The ITC order doesn’t effect watches that are already in use. Apple Watch SE models remain available for sale both online and in stores.
Apple has said it is pursuing a range of legal and technical options to resume sales of Apple Watch Series 9 and Apple Watch Ultra 2, and has submitted a proposed redesign for both Apple Watch Series 9 and Apple Watch Ultra 2 for U.S. Customs approval.
Apple said it was “thrilled” to be able to resume sales of the full Apple Watch line.
“Apple’s teams have worked tirelessly over many years to develop technology that empowers users with industry-leading health, wellness and safety features and we are pleased the U.S. Court of Appeals for the Federal Circuit has stayed the exclusion order while it considers our request to stay the order pending our full appeal,” the company said.
Masimo
declined to comment on the Federal Circuit court’s ruling.
In Wednesday trading, Apple was down 0.2% to $192.59, while Masimo was off 4.8% to $114.87.
Write to Eric J. Savitz at eric.savitz@barrons.com
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