Apple wins appeal to pause U.S. ban on some watch imports

Apple on Tuesday appealed a decision to ban imports of its watches based on a complaint from medical monitoring technology company Masimo.

Apple AAPL.O can for now resume sales of its flagship smartwatches, after a U.S. appeals court on Wednesday paused a government commission’s import ban on the devices imposed in a patent dispute over its medical monitoring technology.

The tech giant had filed an emergency request asking the U.S. Court of Appeals for the Federal Circuit to halt an order from the U.S. International Trade Commission (ITC), which had ruled that Apple had infringed the patents of Irvine, California-based Masimo MASI.O.

A final decision could cost either company millions of dollars and potentially force a settlement or some kind of technological workaround by Apple, analysts said. Ultimately, though, any financial hit for Apple is likely to be dwarfed by the bad publicity the lawsuit is generating, they said.

Masimo shares closed 4.6% lower at $115.11 following the decision on Wednesday, and Apple shares closed flat at $193.15.

“We are thrilled to return the full Apple Watch lineup to customers in time for the new year,” Apple said in a statement. “Apple Watch Series 9 and Apple Watch Ultra 2, including the blood oxygen feature, will become available for purchase again in the United States at Apple Stores starting today and from apple.com tomorrow by 12 pm PT.”

Masimo declined to comment on the court decision.

The ITC barred imports and sales of Apple Watches with technology for reading blood-oxygen levels. Starting with its Series 6 model in 2020, Apple included a pulse oximeter feature in its smartwatches.

Masimo has accused Apple of hiring away its employees, stealing its pulse oximetry technology and incorporating it into Apple Watches. Apple has countersued, calling Masimo’s legal actions a “maneuver to clear a path” for its own competing smartwatch.