In the US, Apple is facing a potential sales ban for its smartwatch. This would also affect the European market.
AliveCor has accused Apple of violating its patents related to ECG technology. The US authority International Trade Commission (ITC) has already imposed an import ban – but this is suspended until the court hearings have been completed. However, this has an acute effect on the Apple Watch, in which the technology is used.
Apple Watch sales stop not yet in effect
Apple has suffered a defeat in the ongoing legal dispute. The Biden administration will not overturn the ITC’s decision to halt imports of Apple Watches to the United States, Reuters reports. After the ban was established on December 22, 2022, the White House had 60 days to veto it. While US presidents have rarely used it in the past, the Obama administration lifted a similar import ban on iPhones and iPads in 2013. At that time, the administration cited the impact on consumers and economic competition as reasons.
The ITC has temporarily suspended the sales freeze for the Apple Watch as long as the negotiations in the course of the patent dispute continue. At the beginning of December 2022, the US Patent Office declared the AliveCor patents invalid. The company is now appealing this decision. According to Reuters, Apple plans to challenge the sale of Watch models with an ECG function. According to the company, a ban could have a negative impact on public health.
Also read: Apple Watch Ultra in the test – what is the 1000 euro smartwatch good for?
Apple Watch 4 and newer would be affected by the sales stop
Specifically, the litigation is about three patents related to AliveCor’s KardiaBand. This is an accessory for the Apple Watch that can, among other things, create an EKG (electrocardiogram) of the user. This technology is used to detect heart problems at an early stage. AliveCor accuses Apple of copying the technology. In addition, Apple is said to have 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 of 2018, and the new Apple Watch Ultra from 2022 also comes with the feature. Only the Apple Watch SE model is not affected. Apple itself has filed a countersuit, accusing AliveCor of infringing its own patents.
What consequences could an import ban have?
The European market would initially not be directly affected by an import ban in the USA. Also, Apple could continue to sell its Watch SE models as they are unrelated to AliveCor’s EKG patents. However, the decision could result in a number of changes. Because stopping sales of the Apple Watch models with ECG would most likely result in Apple launching a new model that does not infringe any patents.
With more than a quarter of the global market share (source: extra), the Apple Watch is an important mainstay for the company. Therefore, a withdrawal from the lucrative smartwatch business currently seems rather doubtful. It would be conceivable, for example, to introduce a new model in the USA while remaining stocks would continue to be sold in other markets.
source
Reuters: “Biden admin won’t veto ITC’s Apple Watch import ban ruling’ (accessed February 23, 2023)