Apple's stripping out blood oxygen sensing from Apple Watch enough to skirt import ban
Apple's software fix to disable a blood oxygen sensing feature in the Apple Watch could be enough to thwart the ITC import ban, U.S. Customs and Border Protection has determined.

Apple Watch Ultra 2
The Apple Watch Series 9 and Apple Watch Ultra 2, among other models, are the subjects of a currently-stayed ITC import ban brought about by a Masimo patent infringement complaint. However, it seems that Apple's attempt to work around the ban with changes is enough for U.S. Customs to allow imports to continue.
A Monday Federal Circuit filing from Masimo refers to a January 12 decision by the Exclusion Order Enforcement Branch of U.S. Customs and Border Protection. The filing, spotted by 9to5Mac, explains that the branch has "decided that Apple's redesign falls outside the scope of the remedial orders in the ITC investigation underlying Apple's appeal."
As part of the request, Apple claimed "its Redesigned Watch products definitely (1) do not contain pulse oximetry functionality," the Masimo filing quotes.
However, since Apple maintained that some of the information in the proceeding is confidential, Masimo didn't provide a copy of the decision in the filing. No public release of the filing exists either.
Ultimately, Masimo's attorneys explain, the "EOE Branch decision finding the redesign outside the scope of the remedial orders would eliminate any irreparable harm alleged by Apple."
Minimal sales impact
At face value, the discussion by Masimo in the filing indicates that Apple has done something to the Apple Watch to mean the claims of patent infringement no longer apply, at least in the eyes of U.S. Customs and Border Protection.
However, it isn't explained what has changed. The discussion of a "redesign" could mean physical changes to the hardware, but that would require extensive work and resource consumption to perform in a short timeframe.
The more likely result is Apple's rumored software update, which it submitted to Customs for investigation in late December. Again, while there isn't explicit detail on what the update does, it is likely to simply disable the blood oxygen features.
To consumers, who can still buy a current-gen Apple Watch in the United States since the ITC ban is stayed for the moment, the decision won't immediately change things. Existing stocks of Apple Watch units in the country that have the feature enabled will continue to do so.
What it will affect are units imported into the United States. At that point, Apple will theoretically be selling the Apple Watch with the relevant features disabled.
Apple is highly likely to comment on the situation before it occurs.
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Comments
That being said, I hope Masimo gets reimbursed for their troubles.
I must disagree that Apple created that technology independently, considering they poached talent from Masimo and applied for patents the very same week that the new staff joined, you don't develop new tech that quickly.
I was frankly surprised Masimo’s patent had calibration data plots in it, but it is useless because it will be entirely dependent on the emitter-receptor configuration and body location.
Health. And there are third party complications that will showcase the most recent reading on the watchface.
I think you are spot on really. Hiring executives by 'poaching' using more pay, benefits ... does not incriminate any company. I don't think Apple is that stupid or arrogant to have taken trade secrets from the 2 that Apple hired. In fact given that the tech is now 80 years old, it baffles me how anyone has gotten a patent in this. However, the former Masimo executives would have know how strongly Masimo's patent position was, particularly with 'prior art'. Although the USPTO requires you to disclose any prior art that you become aware of, most companies keep a lid on such and disclose only if cited in court. Given that 13 Masimo patents have now been invalidated, and Apple is working on the remaining 2 that the ITC has focused on, it does not take much to connect the dots. I think Masimo may have created an unforced strategic error in going after Apple here. An error that could cost them their existing market leader place in hospital O2 saturation monitoring. There are many Chinese potential manufactures (who likely make Masimo's current devices) watching this space.
https://www.cablesandsensors.com/pages/history-of-pulse-oximetry Prior art deep into the past.
Also if Apple disables this feature you can guarantee there will be a class-action lawsuit about how people bought an Apple Watch with anticipation of using the blood oxygen feature and now the can't. I guarantee you there's a scummy lawyer out there just waiting for this to happen so they can sue Apple for "damages" I'm calling this now. It's gonna happen!
If you want a Watch with blood oxygen saturation measurements after the shenanigans are done and Apple has removed it from US sold Watches, buy it in Canada or Mexico. It will be curious if it is geofenced, but doubtful. I don't think that would survive a court case.
I wonder if this latest maneuver, which effectively neutralizes the import ban as a cudgel to used by Masimo, is a gambit by Apple to drive a deal on its own terms with Masimo. I can't imagine Apple really wants two versions of the same watch out there in the marketplace, so I would think the "right" deal would still be attractive to them, and by showing Masimo they're ready, willing and able to get around the import ban, it leaves Masimo in a much weaker negotiating position.