{"id":244105,"date":"2023-12-19T16:28:20","date_gmt":"2023-12-19T16:28:20","guid":{"rendered":"https:\/\/lovemainstream.com\/?p=244105"},"modified":"2023-12-19T16:28:20","modified_gmt":"2023-12-19T16:28:20","slug":"apple-has-17-billion-rescue-mission-to-avoid-smartwatch-ban","status":"publish","type":"post","link":"https:\/\/lovemainstream.com\/lifestyle\/apple-has-17-billion-rescue-mission-to-avoid-smartwatch-ban\/","title":{"rendered":"Apple has $17 billion rescue mission to avoid smartwatch ban"},"content":{"rendered":"
Apple has launched a $17 billion rescue mission to save its smartwatches from being banned in the US due to patent infringement claims.<\/p>\n
Engineers will use the funds to adjust how devices’ algorithms measure oxygen saturation and show data to users before the clock runs out on December 24.<\/p>\n
That is when all Apple Stores in the US must stop selling the Series 9 and Ultra 2 models after an order by America’s trade watchdog, which ruled the tech giant stole copyrighted tech.<\/p>\n
The blood oxygen feature is the focus of a legal dispute involving Apple and California-based biotech company Masimo, which says Apple poached its staff and stole IP to use in its own devices.\u00a0<\/p>\n
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Apple has launched a $17 billion rescue mission to save its smartwatches from being banned in the US due to patent infringement claims<\/p>\n
Apple will stop selling the watches on its website on Thursday and pull devices from its roughly 270 brick-and-mortar outlets by December 24.\u00a0<\/p>\n
But customers who placed orders can collect them at stores before the deadline.<\/p>\n
The move is expected to lose Apple around $200 million around the holiday season.\u00a0<\/p>\n
The company’s wearable industry is worth around $18 billion in revenue a year.<\/p>\n
And if the White House does not veto the ban, Apple would have to wait until 2028 to begin sales because that is when Masimo’s two patents expire.\u00a0<\/p>\n
The company’s retail locations have already been told to swap out signs for the wearable, promoting the device without showing images of the Series 9 and Ultra 2 – Apple’s latest smartwatches that are the focus of the ban.<\/p>\n
A report from Bloomberg\u00a0revealed Apple’s rescue mission, stating Apple could settle with Masimo, the Irving-based company that filed the suit, but the move is improbable.<\/p>\n
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Engineers are reportedly racing to adjust how devices’ algorithms measure oxygen saturation and show data to users before the clock runs out on December 25 – Christmas Day.\u00a0A complete ban would prohibit Apple from importing new Series 9 and Ultra 2 devices<\/p>\n
Details of the exact software changes are unknown, but industry experts speculate Apple will change algorithms enough to address patent violations.<\/p>\n
However, Masimo’s patents focus on hardware, not software, which emits light on the skin to collect data on blood oxygen levels.\u00a0\u00a0<\/p>\n
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The feature works by measuring the color of blood flowing through the body to determine levels of oxygen in just 15 seconds, according to Apple.\u00a0<\/p>\n
Masimo told Bloomberg that\u00a0a software fix would be an insufficient remedy and ‘the hardware needs to change.’\u00a0<\/p>\n
If Apple does change the algorithm, the tweaks could reduce that accuracy or change the sensor’s functionality, making the feature irrelevant.<\/p>\n
The report also noted that if Apple is forced to replace hardware, it will take at least three months to produce and ship corrected models.\u00a0<\/p>\n
The dispute began in 2013 when Masimo met with Apple to discuss a possible collaboration for the Apple Watch project.<\/p>\n
But Apple opted not to join Masimo due to its focus on hospital products, which does not align with the tech giant’s consumer focus model.<\/p>\n
Masimo sued Apple in federal court in 2020 and again in 2021 after the Apple Watch Series 6 release, the first model to have the blood oxygen feature.\u00a0<\/p>\n
The company claimed that Apple infringed on two patents related to hardware that is used in the Apple Watch sensors.\u00a0<\/p>\n
The ITC,\u00a0which is responsible for clamping down on unfair trade practices, handed down its order in October, starting the clock on a 60-day Presidential Review Period, now set to expire on December 25.\u00a0<\/p>\n
The Biden administration can veto the ITC ban, but the White House has not acted.\u00a0<\/p>\n
A complete ban would prohibit Apple from importing new Series 9 and Ultra 2 devices into the US, leaving the lower-end SE models only available for purchase.\u00a0<\/p>\n
A Masimo spokesperson told DailyMail.com: ‘After a thorough multi-year legal investigation, the ITC found that Apple infringed certain of Masimo’s patented innovations for measuring blood oxygen.\u00a0<\/p>\n
‘The decision to exclude certain foreign-made models of the Apple Watch demonstrates that even the world’s most powerful company must abide by the law.<\/p>\n
‘The ITC\u2019s expert judgment in this matter should be respected, protecting intellectual property rights, maintaining public trust in the United States’ patent system and encouraging US industry.<\/p>\n