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The US Appeals Court approves Apple's request to temporarily stop the ban on Apple Watch.

The US Appeals Court approves Apple’s request to temporarily stop the ban on Apple Watch.

On Wednesday, Apple achieved a win as a U.S. appeals court temporarily stopped a government commission’s restriction on importing some of the company’s well-known Apple smartwatches due to a patent disagreement with medical device company Masimo.

The large technology company submitted an urgent plea to the U.S. Court of Appeals for the Federal Circuit to stop the ruling, following an appeal of the U.S. International Trade Commission’s determination that it violated Masimo’s patents.

Masimo did not provide a statement regarding the court’s ruling, and Apple has yet to respond.

According to analysts, the ultimate outcome could result in significant financial losses for both companies and may even lead to a resolution or alternative solution by Apple.

After the decision, Masimo’s stock declined by approximately 4%, while Apple’s shares remained relatively unchanged.

According to Wedbush Securities analyst Dan Ives, Apple’s victory in the patent battle was unexpected due to the legal challenges involved. However, Masimo will now face a tough battle as they appeal the decision in January. This is expected to be a pivotal moment for the company.

The appeals court issued a ruling consisting of four paragraphs, stating that it would temporarily suspend the ban while it reviews Apple’s motion for a longer delay during the appeals process. The court has given the ITC until January 10 to reply to Apple’s petition.

On Tuesday, the Biden administration chose not to veto the ban, allowing it to go into effect. Later that day, Apple requested for the ban to be put on hold.

Apple disclosed to the court on Tuesday that U.S. Customs and Border Protection is currently reviewing the potential infringement of Masimo’s patents and the importation of redesigned versions of their watches. The customs agency has announced a decision date of January 12, as reported by Apple.

Masimo has alleged that Apple has poached its workers, taken their pulse oximetry technology, and integrated it into their Apple Watches.

The import and sale of Apple Watches equipped with blood-oxygen level reading technology was prohibited by the ITC. In 2020, Apple added a pulse oximeter function to its smartwatch lineup, beginning with the Series 6 model.

After halting sales last week due to the ITC’s ruling, Apple can now resume selling the Series 9 and Ultra 2 smartwatches in the United States. These watches were still being sold by other retailers such as Amazon, Best Buy, Costco, and Walmart.

The restriction did not impact the Apple Watch SE, a more affordable version that does not have a pulse oximeter. Additionally, previously purchased watches were not affected by the ban.

Before the announcement, CEO of analyst firm Creative Strategies, Ben Bajarin, stated that if the import ban continues, it could result in Apple losing hundreds of millions to billions of dollars in revenue.

“Moving ahead, it is certain that Apple will need to adopt a new approach in upcoming hardware in order to continue offering this feature,” said the source.

The jury trial regarding Masimo’s accusations against Apple in a federal court in California resulted in a mistrial in May. In a separate case, Apple has also filed a lawsuit against Masimo in a federal court in Delaware for patent infringement. Apple has accused Masimo of using legal tactics to pave the way for its own smartwatch in the market.

According to a report from the company, Apple’s revenue from their wearables, home, and accessory division, which includes the Apple Watch, AirPods earbuds, and other products, totaled $8.28 billion in the third quarter of 2023.