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27.10.2023 13:21, Pavel Kotov
The US International Trade Commission (ITC) has admitted that Apple has infringed a patent owned by its competitor Masimo, which could lead to a ban on the import of certain Apple Watch models into the US.
Image source: apple.com
In 2021, health technology developer Masimo filed a complaint with the ITC accusing Apple of infringing patents covering methods for measuring blood oxygen levels. A pulse oximeter that performs this function has been installed in most Apple Watch models since 2020. The agency ruled that Apple violated US trade laws and issued a limited exclusion order for certain Apple Watch models, effectively banning their import into the country. The country’s presidential administration has 60 days to cancel the department’s decision – otherwise Apple will have to challenge the decision on appeal.
The electronics giant has several other ways to avoid the ban. First, he can make changes to the Apple Watch, eliminating the use of the technology that is the subject of the trial – there are enough software tools for this. Secondly, Apple may try to reach an agreement with Masimo, which has been in litigation for several years now – the complainant claims that the defendant not only stole its technology, but also lured some of its employees to add this feature to the Apple Watch.
The relationship between Masimo and Apple began back in 2013, when the two companies tried to agree on a partnership: Apple discussed integrating Masimo technology into its products, but the negotiations did not end in anything. At the trial stage, it turned out that Apple’s management was working on the idea of absorbing Masimo and appointing its CEO as Apple’s vice president of medical technologies. But the electronics giant abandoned this idea, since “acquisitions of this scale are not our style,” because Masimo at that time was valued at $1 billion. Instead, Apple began to lure employees of its former potential partner and develop a similar solution on its own.
Apple’s official position on this matter, voiced by the representative, sounds somewhat different: at that time the company was negotiating not only with Masimo, but also with other players in the medical technology sector. The collaboration with Masimo did not work out because it was focused on clinical and medical systems, and not on the consumer segment. However, many small firms have complained about Apple’s behavior over the years. In most cases, they say, the technology giant followed a single pattern: negotiating partnerships, exploring technological solutions, withdrawing from negotiations and then further incorporating its own analogues of these solutions into its products.
Apple worked out another typical scenario with AliveCor. Initially, the company produced accessories for taking electrocardiograms using the Apple Watch. In 2018, these accessories stopped working, being replaced by Apple’s own product. Apple was found guilty of patent infringement, but it obtained their cancellation through the Patent Trial and Appeal Board, created to protect against patent trolls, and the ITC decision on the import ban automatically became invalid. AliveCor is currently appealing the decision to revoke its patents.
