February 23, 2023, 11:44 am | Read time: 3 minutes
In the U.S., Apple faces a potential sales ban on its smartwatch. This could also impact the European market.
The company AliveCor accuses Apple of infringing its patents related to ECG technology. The U.S. International Trade Commission (ITC) has already imposed an import ban–though it is suspended until the court proceedings are concluded. This directly affects the Apple Watch, which uses the technology.
Sales Ban on Apple Watch Not Yet in Effect
In the ongoing legal dispute, Apple has suffered a setback. According to the news agency Reuters, the Biden administration will not overturn the ITC’s decision to stop the import of Apple Watches into the U.S. After the ban was set on December 22, 2022, the White House had 60 days to veto it. Although U.S. presidents have rarely used this power in the past, the Obama administration did overturn a similar import ban on iPhones and iPads in 2013, citing the impact on consumers and market competition as reasons.
The ITC has temporarily suspended the sales ban on the Apple Watch while negotiations in the patent dispute continue. In early December 2022, the U.S. Patent Office declared the AliveCor patents invalid. The company is now appealing this decision. According to Reuters, Apple plans to challenge the sales ban on watch models with ECG functionality. The company claims that a ban could negatively affect public health.
Read also: Apple Watch Ultra Review–Is the $1,000 Smartwatch Worth It?
Apple Watch 4 and Newer Would Be Affected by Sales Ban
The legal dispute specifically involves three patents related to AliveCor’s KardiaBand. This is an accessory for the Apple Watch that can create an ECG (electrocardiogram) for users, helping to detect heart problems early. AliveCor accuses Apple of copying the technology. Additionally, Apple allegedly pushed the company out of the market by making its iOS operating system incompatible with the KardiaBand. The Apple Watch has supported the ECG function since the 4th generation in 2018, and the new Apple Watch Ultra from 2022 also includes this feature. Only the Apple Watch SE model is not affected. Apple has filed a countersuit, accusing AliveCor of infringing its own patents.
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What Could Be the Consequences of an Import Ban?
The European market would not be directly affected by an import ban in the U.S. Apple could also continue to sell its Watch SE models, as they are not related to AliveCor’s ECG patents. However, the decision could lead to a series of changes. A sales ban on Apple Watch models with ECG would likely result in Apple launching a new model that does not infringe on patents.
With more than a quarter of the global market share (source: Statista), the Apple Watch is a crucial part of the company’s business. Therefore, a withdrawal from the lucrative smartwatch market seems unlikely. It is conceivable that a new model could be introduced in the U.S., while remaining stock is sold in other markets.
Source
Reuters: “Biden admin won’t veto ITC’s Apple Watch import ban ruling” (accessed February 23, 2023)