Apple is pausing the sale of some of its watch models after it lost a patent dispute against Masimo, after an October ruling by the International Trade Commission (ITC). The Cupertino giant will stop selling some smartwatches online from Thursday and in stores from Christmas Eve. Apple shares fell by just over one percent and Masimo shares rose by six percent. Analysts say that the pause in sales will not have much of an effect as the tech giant has already sold a huge amount of watches and third-party sellers can reportedly continue to sell Apple Watches.
On Monday, Apple said that it would remove Series 9 and Ultra 2 from its online store and shelves. These popular watches have the technology that allegedly infringed on Masimo’s patent. Medical technology company Masimo has a patent for a blood oxygen sensor and Apple allegedly infringed the patent though Apple denies this, and the tech giant is also contesting it.
A Masimo spokesperson sent a statement to NPR that read, “The decision to exclude certain foreign-made models of the Apple Watch demonstrates that even the world’s most powerful company must abide by the law.”
Apple had two months to reach a deal with Irvine California-based Masimo after the ITC ruling. Instead, it has appealed to the President to veto the I.T.C. ruling according to a report in the New York Times. The outlet reported that Joe Kiani, the chief executive of Masimo knew of the appeal as the administration had contacted him about the request from Apple.
In the past, Apple received a Presidential veto when it lost a case against Samsung according to a ruling by ITC in 2013. However, as reported by NPR, this time the company against whom Apple lost is a publicly traded company based in Irvine, California.
The White House can decide on the issue until Christmas Day. As of now, there is no comment by the White House and Apple confirmed the pause but did not comment further.
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