On October 26 this year, the International Trade Commission (ITC) ruled that Apple’s Apple Watch Series 9 and Apple Watch Ultra 2 watches infringed Masimo’s pulse oximeter patent. Based on the ruling, Apple will stop selling these two Apple Watch models in the United States in December.
Ultra2 and Series9 account for the vast majority of Apple's watch sales. It is the end of the year shopping season in the United States, and the impact of this sales ban on Apple’s revenue will obviously not be small. For this reason, the Biden administration in the United States is also hesitant to consider whether to veto the sales ban.
On Tuesday Eastern Time, White House Press Secretary Karine Jean-Pierre said that the Biden administration is tracking the case of Apple Watch being banned from sale.
She emphasized,
According to legal provisions, after the ITC ruling is made, the US government has 60 days to consider whether to veto the ban, which means that the final deadline for the US government to consider and make a decision is December 25.
Jean-Pierre said the White House did not want to preemptively take a position "before any decision is made by the trade department," adding,
On the other hand, Masimo CEO Joe Chiani said in an interview that he was open to reaching a settlement with Apple, but he did not disclose his specific requirements for the amount of settlement money.
In addition, he also emphasized that Apple has not proactively contacted Masimo. He believes that Apple's choice to remove Apple Watch Series 9 and Ultra 2 on Christmas Eve is just a show, and its purpose is to "deliberately put pressure on the Biden administration to veto the ban."
According to U.S. law, the President of the United States has the power to intervene and ban some bans, but this situation is rare in U.S. history.
Ten years ago, the U.S. government also stepped in to help Apple. In 2013, Apple lost a trade dispute with South Korea's Samsung Electronics. Apple's iPhone and some iPad models were banned from entering the U.S. market. Then-U.S. President Obama vetoed the ban.
But this time the situation is different from last time. Last time Apple’s opponent in the trade conflict was a Korean company, but this time, its opponent in the conflict is also a US company - Masimo is also headquartered in California - which may make it more difficult for the US government.
While the U.S. government is hesitating, Apple's market value has exceeded US$3 trillion, making it the world's most valuable company. Since the beginning of this year, Apple's stock price has soared by more than 50%, and its market value has increased by US$1 trillion. Its market value has exceeded the market value of all but the world's six major stock markets.