Apple Inc. (AAPL.US) caught in a patent tug-of-war with Masimo Corporation (MASI.US): Apple Watch import ban may be re-examined

According to reports, the U.S. International Trade Commission has decided to launch a new process to determine whether the importation of the latest Apple Inc. watch should be banned due to a patent dispute with Masimo Corporation. The U.S. International Trade Commission stated that it will investigate the Apple Inc. watch to determine if it still infringes on Masimo Corporation's patents related to blood oxygen measurement technology. The report also stated that these Apple Inc. watches have been redesigned to avoid the import ban previously issued by the commission. Regulatory authorities expect to complete the investigation within six months. The report stated that Apple Inc. has stated that the lawsuit is baseless and aims to prevent the launch of its watch's blood oxygen detection function, alleging that Masimo Corporation filed the lawsuit by copying the design of the Apple Inc. watch. These two companies have been involved in legal disputes in various aspects. Last Friday, a federal jury in California ruled that Apple Inc. infringed on a patent of Masimo Corporation and subsequently awarded Masimo Corporation $634 million in damages. In 2023, the commission banned the import of the Apple Inc. Series 9 and Ultra 2 smartwatches after finding that Masimo Corporation's patent had been infringed. Apple Inc. then removed the blood oxygen detection technology from its watches to avoid the impact of the ban. In August, Apple Inc. introduced a redesigned "blood oxygen" feature for some users of the Apple Watch Series 9, Series 10, and Apple Watch Ultra 2 through software updates for the iPhone and Apple Watch. This update was enabled after receiving approval from the U.S. Customs and Border Protection. However, Masimo Corporation filed a lawsuit against the decision by the U.S. Customs and Border Protection to allow Apple Inc. to import Apple Watches with blood oxygen technology due to a patent dispute between the company and the agency. In 2023, a judge in California declared a mistrial in Masimo Corporation's trade secret case against Apple Inc. stating that the jury failed to reach a unanimous decision. The report also noted that last year, in Delaware, Apple Inc. obtained a small victory of $250 in a counterclaim against Masimo Corporation, alleging that Masimo Corporation's smartwatch infringed on two design patents of Apple Inc.