In a major patent dispute between tech giant Apple and medical-monitoring technology company Masimo, Apple has been granted a temporary pause on a ban that prevented the import of its Series 9 and Ultra 2 smartwatches into the United States. The ban was initially imposed by the US International Trade Commission (ITC) in October following a complaint from Masimo, which accused Apple of infringing on its patents and stealing its pulse oximetry technology. Masimo claimed that Apple had incorporated its technology into its watches and had also poached its employees. The ban was set to come into effect after the US President Joe Biden's administration declined to veto it.

However, Apple appealed the ban and simultaneously requested a pause on its implementation until a response to its appeal was received from the US ITC. Apple argued that it would suffer "irreparable harm" if the ban remained in place for the two weeks it expected the appeal process to take. In a surprising turn of events, the US Court of Appeals granted Apple's request for a pause on the import ban, lifting the restrictions while it considers Apple's motion for a longer-term pause during the appeals process. The court has given the US ITC until January 10th to respond to Apple's request.

Analysts have called this a significant victory for Apple, as it allows the company to continue importing and selling its popular smartwatches in the US. Dan Ives, an analyst from Wedbush Securities, noted that this outcome was unexpected given the legal complexities of the patent battle. He also predicted that the appeals case in January would be a crucial moment for Masimo.

Apple has previously accused Masimo of launching legal actions as a means to clear a path for its own competing smartwatch. In response, Apple has countersued Masimo for patent infringement in Delaware federal court. The US ITC ruled in October that Apple watches with blood-oxygen level reading technology should not be imported or sold. As a result, Apple temporarily halted sales of its Series 9 and Ultra 2 smartwatches in the US, although they were still available from other retailers such as Amazon, Best Buy, Costco, and Walmart. It's important to note that the ban does not affect the Apple Watch SE, a lower-end model without a pulse oximeter, nor does it impact watches that have already been sold.

The potential impact of the import ban on Apple could have been significant. Ben Bajarin, CEO of analyst firm Creative Strategies, estimated that it could cost the company hundreds of millions or even billions of dollars. He suggested that Apple would need to adopt a different approach in future hardware to maintain the functionality that was affected by the ban.

Meanwhile, a federal appeals court has temporarily blocked the sweeping import ban on Apple's latest smartwatches as the patent dispute continues through the legal system. Apple filed an emergency appeal motion on Tuesday, challenging the ruling by the US International Trade Commission that went into effect this week. The ITC order prohibited Apple from importing the Apple Watch Series 9 and Apple Watch Ultra 2, among other newer models, due to patent violations. The Biden administration had until the end of Christmas to overturn the ban, but the White House confirmed that it would not intervene. The temporary block by the appeals court allows the US Customs department to consider Apple's redesign of the affected watch models, which is expected to be completed by January 12th.

Apple had already removed the banned watch models from its online store, and its physical stores reopened without the latest top-of-the-line watches in stock. However, the cheaper Apple Watch SE, which was not part of the ruling, remained available for sale. Despite the ban, third-party retailers continued to sell the affected Apple Watch models. Best Buy, Target, Walmart, and Amazon were among the retailers still offering the watches.

With the temporary stay granted by the appeals court, Apple has secured a reprieve that allows it to continue selling its top-tier smartwatches while it challenges the ITC decision in court. The court's order directs the ITC not to enforce the ban until further notice. Masimo has chosen not to comment on the recent developments.