Apple Dodges Import Ban In Apple Watch Patent Battle With Masimo
Portfolio Pulse from Piero Cingari
Apple Inc. (AAPL) has avoided an import ban on its Apple Watch models after a U.S. Customs and Border Protection ruling favored a redesign to address a patent dispute with Masimo Corporation (MASI). The redesign, which is not final and could be challenged by the ITC, involves a software update that removes the blood oxygen saturation feature. This dispute is over alleged patent infringement by Apple's Series 9 and Ultra 2 watches on Masimo's blood-oxygen reading patents. Apple's wearables division, which includes the Apple Watch, generated $8.28 billion in Q3 2023, accounting for 9% of its total revenue.
January 15, 2024 | 6:31 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Masimo Corporation faces a setback in its patent dispute with Apple as U.S. Customs and Border Protection ruled in favor of Apple's redesigned Apple Watch, which no longer infringes on Masimo's patents by removing the blood oxygen feature.
Masimo may experience a negative short-term impact on its stock price due to the ruling that favors Apple, potentially reducing the leverage Masimo has in the patent infringement dispute. However, the situation could change if the ITC overturns the decision.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Apple Inc. has avoided a potential import ban on its Apple Watch models after a favorable ruling regarding a redesign to circumvent a patent dispute with Masimo. The redesign involves removing the blood oxygen feature via a software update.
The favorable ruling for Apple mitigates the risk of an import ban on a significant product line, which could have negatively impacted its revenue from wearables. The temporary resolution of the dispute is likely to be viewed positively by investors, potentially leading to a short-term uptick in AAPL's stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90