Apple Faces Potential Import Ban and $634M Fine in Patent Dispute with Masimo

Legal Background and Current Developments

Apple has been found guilty of infringing on Masimo's medical technology patents, resulting in a $634 million penalty ¹

. The dispute centers around Apple's use of Masimo's blood oxygen measurement technology in their smartwatches. A federal jury in California unanimously agreed that Apple violated Masimo's patent rights through features such as exercise mode notifications and heart rate monitoring.

ITC Investigation and Potential Consequences

The US International Trade Commission (ITC) has launched a new investigation to assess whether redesigned Apple Watch models continue to infringe on Masimo's patents ²

. This follows previous ITC rulings that led to import bans on certain Apple Watch models. The commission has set a six-month timeline to conclude this investigation. If the ITC determines that the redesigned models still violate Masimo's patents, it could result in another import ban, potentially affecting Apple's global supply chain.

Company Responses and Market Implications

Apple has stated its intention to appeal the $634 million verdict, maintaining that they do not agree with the jury's decision ¹

. Masimo, on the other hand, has welcomed the verdict as a validation of their intellectual property rights. The outcome of this legal battle could have significant implications for Apple's wearable technology business, potentially affecting their market share and product development strategies.