While Apple awaits a decision from President Joe Biden's administration on the ITC's Apple Watch ban, the company is developing software updates that could help avoid a temporary halt in sales. Masimo started a lawsuit against Apple in 2020, alleging that the Apple Watch pulse oximeter infringed on multiple patents held by the company. The case was submitted to the U.S. International Trade Commission in 2021, with a recommendation for an import ban.
According to Bloomberg, Apple is working on multiple fronts to avoid the ban, one of which involves last-minute software updates to circumvent relevant patents. Apple Watch Ultra 2 and Apple Watch Series 9 will stop selling in Apple's online store on December 21, and then completely stop selling on December 25, unless the Biden administration vetoes the ITC's decision before then.
Masimo argued that patent infringement issues could only be addressed through hardware changes to future Apple Watch models. Existing Apple Watch Series 6 and above need to stop sales, except Apple Watch SE.
However, Apple believes the software update will satisfy U.S. Customs requirements. The report calls it "a high-risk engineering effort unlike anything Apple has done before."
Apple must act quickly to prevent its flagship wearable device from being withdrawn from the U.S. market. The key part of the holiday shopping season is already over, so the impact of the ban won't be felt until fiscal second-quarter earnings are released.
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