Apple
has halted sales of its newest watches,
Apple Watch
Series 9 and Watch Ultra 2, in the US due to a
patent dispute
with Masimo, and the International Trade Commission has imposed a ban. The timing of this halt in sales, just before the holiday season, has raised many eyebrows.
Masimo
CEO
Joe Kiani
has criticised Apple's move as a "stunt" to put pressure on the
Biden
administration to veto the order.
Starting from 3 PM ET on December 21, the Apple Watch Series 9 and Ultra 2 models will no longer be available for purchase through the online store. The last date to pick up or get these models delivered from Apple’s retail stores is December 24. However, the two watches will be available to purchase through third-party retail stores, like Best Buy, Walmart, and others.
In a recent interview on Bloomberg TV, when asked if he would settle, Joe Kiani, the CEO of Masimo, stated that he is open to settling the legal dispute with Apple, which could lead to a ban in the US on Apple's smartwatch. However, he mentioned that Apple has not yet "called," saying "it takes two to tango." While Kiani did not tell the amount he would seek from Apple, said that he would “work with them [Apple] to improve their product.”
In 2020, Masimo sued Apple for stealing trade secrets and infringing on their patents. The
US International Trade Commission
found that Apple violated one of Masimo's patents, leading to an import ban on the Apple Watch, which goes into effect on December 25.
In 2013, Kiani had a conversation with Apple where they expressed interest in acquiring his company or hiring him to help with their internal technology projects. However, things didn't go as planned for Apple as Masimo's CEO accused them of poaching their employees with access to confidential information.
Apple apparently hired over 20 of Masimo's engineers, including the chief medical officer, and in some cases, doubled their salaries to get them to work on similar medical technology for their watch. “We could have worked with them,” said Kiani, “they didn’t have to steal our people.”
Kiani notes that this is not an “accidental,” but rather, their intellectual property was deliberately taken. “I am glad the world can now see we are the true inventors and creators of these technologies,” he said.
Apple has voiced its strong disagreement with the order and is currently exploring various legal and technical options to ensure that the Apple Watch remains available to its customers. Apple could appeal to the federal court.
The
iPhone
maker is said to be working on a software update for the Apple Watch, which could potentially help it avoid the ban. However, Kiani has rebuffed this idea, stating that their parents are related to the hardware, not the software. “I don’t think that could work; it shouldn’t because our patents are not about the software,” said Kiani.
Apple has also stated that it believes Masimo initiated the legal fight to pave the way for its smartwatch, which Apple claims is a “knockoff.”
The US President has until December 26th to cancel the injunction that would lead to the import of Apple Watch being banned in the US. If the Biden administration does not interfere, this could result in billions of losses for Apple. Kiani, in the interview, suggested that Apple could avoid the issue by producing both the watch and its components within the United States.
English (US) ·