US Customs Fights Back: Seeks Dismissal of Masimo's Apple Watch Lawsuit

The high-stakes legal drama surrounding the Apple Watch blood oxygen sensor patent dispute has taken another sharp turn. In a significant development, the U.S. Customs and Border Protection (CBP) has formally requested a federal court to dismiss the lawsuit filed against it by medical device company Masimo.

This move intensifies the already heated battle, as Masimo's lawsuit aimed to block CBP's controversial decision to allow redesigned Apple Watch models, including the flagship Series 9 and Ultra 2, to re-enter the U.S. market despite an existing import ban.

Masimo initiated its legal challenge against CBP in January, arguing that the federal agency's approval of Apple's redesigned watches was erroneous.

The core of Masimo's complaint is that Apple's alleged redesigns – which involve modifications to the blood oxygen monitoring functionality – are merely "sham" attempts to circumvent the import ban imposed by the International Trade Commission (ITC). Masimo contends that these redesigned devices still infringe upon its patented pulse oximetry technology, and therefore, should remain subject to the ban.

CBP, however, stands firm in its defense, asserting that its decision was both lawful and meticulously conducted.

In its motion to dismiss, the agency argues that Masimo lacks legal standing to sue the government over its enforcement decisions. Furthermore, CBP maintains that the court lacks jurisdiction to second-guess the agency's technical evaluations, which concluded that Apple's redesigned watches indeed fall outside the scope of the ITC's exclusion order.

The agency emphasized that it diligently reviewed Apple's proposed changes and found them to be sufficient to address the patent infringement concerns.

The root of this contentious dispute traces back to October 2023, when the ITC ruled that Apple had infringed on Masimo's patents related to blood oxygen monitoring technology.

This ruling led to a ban on the import and sale of Apple Watch Series 9 and Ultra 2 models equipped with the infringing sensor. Although the Biden administration had the option to veto the ban, it chose not to intervene, allowing the ITC's decision to stand. Apple briefly halted sales of the affected watches in the U.S.

but quickly sought to mitigate the impact by submitting redesigns to CBP for approval.

Apple's efforts included both software updates and hardware modifications, specifically targeting the pulse oximetry features. While Apple has never publicly detailed these changes, the fact that CBP gave its nod suggests the agency found these modifications significant enough to differentiate them from the infringing designs.

This has led to a situation where Apple can continue selling its latest smartwatches, albeit potentially with altered blood oxygen monitoring capabilities, which Masimo vigorously disputes.

The outcome of this latest legal maneuver could have profound implications not only for Apple and Masimo but for the broader tech industry.

It underscores the complexities of intellectual property law in a rapidly evolving technological landscape and highlights the power of regulatory bodies like CBP in enforcing such rulings. As the court weighs CBP's request to dismiss, the tech world watches closely to see how this chapter in the epic patent saga will conclude, determining the fate of a key feature in one of the world's most popular wearable devices.