Apple Watch 'Patent Infringement' US Sales Halted... Apple Appeals

Import Ban Imposed Just 3 Months After Launch
Apple Claims "3 Trillion Dollar Damage"

On the 26th (local time), the U.S. government upheld the International Trade Commission (ITC) decision to ban the import of certain Apple Watch models due to patent infringement disputes. Apple immediately appealed the ITC ruling.

From this day forward, Apple is prohibited from importing Apple Watch models involved in the patent infringement dispute into the United States. Apple Watches are produced outside the U.S., including in China. This effectively bans their sale within the U.S.

The Apple Watch is displayed at the Apple Store in Austin, Texas, USA. [Image source=Yonhap News]

In October, the ITC ordered a ban on the import of Apple Watches containing technology that infringes on the blood oxygen measurement patent held by medical technology company Masimo. Following a two-month review by the U.S. Trade Representative (USTR), President Joe Biden finalized the import ban based on the review. Masimo filed a lawsuit against Apple in 2020, claiming patent infringement after the release of the Apple Watch Series 6.

As a result, sales of the newly released Apple Watch Series 9 and Apple Watch Ultra 2, launched in September, will be halted. Apple stopped online sales on the 21st and in-store sales on the 25th, prior to the government decision. Sales of the more affordable Apple Watch SE, which does not include the blood oxygen measurement feature, will continue.

Apple immediately appealed to the Federal Circuit Court of Appeals. In a statement, Apple said, "We strongly oppose the import ban decision" and pledged to "take all necessary measures to return Apple Watches to consumers." Apple also claimed that the sales suspension of the affected models would cause damages worth $3 trillion (approximately 3,882 trillion KRW). Meanwhile, JP Morgan estimated the impact of the Apple Watch import ban on Apple’s revenue at about $5 billion (approximately 6.4695 trillion KRW).

Additionally, Apple submitted a redesigned version of the affected models to the U.S. Customs and Border Protection to resolve the patent infringement issue. Apple also requested the court to temporarily suspend the import ban during the review period of the redesigned version, expected to last until January 12 next year.

Meanwhile, market research firm TrendForce projected global smartwatch shipments to reach 130 million units this year. Apple and Samsung Electronics hold market shares of 32% and 10%, respectively. If the Apple import ban continues in the largest market, the U.S., Samsung Electronics could benefit from the resulting gains.

This content was produced with the assistance of AI translation services.