Key Takeaways
- The president’s administration chose not to overturn a decision by the U.S. International Trade Commission (ITC) that banned the sale of the Apple Watch in the U.S.
- The ITC ruled that the company’s watches violated Masimo Corp.’s patent rights.
- Apple Inc. disputed the trade commission’s ruling and plans to challenge it in a federal appeals court.
Apple Inc. (AAPL) is pushing back against a ban on some of its smartwatches after President Joe Biden’s administration chose not to wade into the dispute.
The U.S. International Trade Commission (ITC) issued the original order to block sales of the Apple Series 9 and Ultra 2 watches in the U.S. after it had determined Apple violated two patents held by health tech firm Masimo Corp. (MASI). The patented technology in question uses a sensor to measure blood-oxygen levels.
On Tuesday, the Office of the U.S. Trade Representative said the U.S. government wouldn’t step in and overrule the prohibition. Ambassador Katherine Tai, who serves as U.S. Trade Representative, said that “after careful consultations,” Tai decided not to reverse the ruling by the ITC, making it final.
Apple said it strongly disagreed with the ITC decision and resulting exclusion order and would challenge the ruling in the U.S. Court of Appeals for the Federal Circuit. In addition, the company filed an emergency motion asking the judges to lift the ban until the case is considered.
Apple shares were down slightly Tuesday. Shares of Masimo rose more than 2%.
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