Why is the Apple Watch banned in the US and what happens next?

The future of one of the most popular consumer products in the world is uncertain

The newest version of the Apple Watch has been pulled from sale in the US amid a major patent dispute.

Apple’s wearable has been found to infringe patents held by Masimo, a medical technology company. As such, it must be pulled from sale, according to US officials.

As of 26 December, therefore, Apple is no longer able to sell one of the most popular consumer products in the world in its home market. The Watch is part of Apple’s wearables, home and accessories business, which is worth about $40 billion per year.

What has happened?

Apple has pulled its newest Watches from sale in the US. It is all because of a dispute over pulse oximetry sensors, which are used to measure how much oxygen is in the blood.

Masimo claims that those sensors violate patents that it owns. Apple says that they do not, and that Masimo is pursuing the claims because it intends to launch its own Watch.

The US International Trade Commission (ITC) has decided that Masimo is at least correct enough to impose an import ban on the Watches. As such, they have been taken down from sale in the country.

Though the ban went into effect on 26 December, Apple had also been preparing for it for a week or so. On 18 December, Apple began “pre-emptively” removing the devices from sales, including from its US website.

Does this apply to every Apple Watch?

The ban only applies to the US, and the Watch is on sale elsewhere as normal.

It also only applies to new watches from Apple, so that those that are already with retailers such as Amazon and Target can still be sold. That also means that those Watches that are already with customers are not affected.

It also applies only to the Apple Watch Series 9 and Apple Watch Ultra 2. As such, the Apple Watch SE is still on sale – but came out more than a year ago and lacks many of the features of the higher-end models.

What have the companies said?

Apple has made clear throughout that it thinks the ban is wrong – and usually suggested that it hopes it will be overturned.

“We strongly disagree with the USITC decision and resulting exclusion order, and are taking all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the U.S. as soon as possible,” its latest statement said.

Masimo has made clear that it is happy with the situation. A spokesperson called the ITC decision “a win for the integrity of the US patent system, and ultimately American consumers.”

Has this happened before?

Apple has had similar difficulties in the past. In February, for instance, the ITC ruled that the Apple Watch should be banned after a separate patent dispute with medical company AliveCor – the Biden administration refused to veto it, but that ban never went into effect.

The last time a government vetoed an ITC ruling came ten years ago, when the Obama administration overturned a ban on iPhones and iPads that came from a patent dispute with Samsung. There were important differences that time, however – most notably that, unlike Samsung, Masimo is also a US company.

How might it all end?

There is no way of knowing for sure. Most people – including the companies themselves – probably didn’t see it going this way, or getting this far.

But for the future of the Apple Watch, there are only really three options. One is that the ban stays in place, and Apple never sells those versions of the Watch again; the second is that the ban is overturned and everything goes back to how it was last week; the third is that the two companies come to an agreement over the patents, such as Apple paying for the patents or even buying Masimo.

The first – that the current Apple Watch never comes back – seems very unlikely. Apple may be unwilling to come to an agreement over the technology but it would almost certainly be less willing to give up sales of one of the most popular consumer products in the world.

The result might also be something of a fudge between those second and third options. Apple could potentially have the ban lifted following a review, which could last until a new version of the Watch could be made that would not violate the patents.

Some reprieve might come soon. Apple is waiting for a review from US Customs and Border Protection into whether redesigned versions of the Watch that do not include the controversial technology still infringe the patents – with a decision expected on 12 January.

It is likely some resolution will be found. Whether that will come from the US government’s decisions or Apple’s pockets is unclear – but time is quickly running out to find out.