9to5Mac is reporting that Apple by all reports is going to get around the ban on Apple Watch sales by taking the extreme approach. They’re going to disable the pulse oximetry features:
The U.S. Customs agency has handed down its decision on whether Apple’s proposed redesign of the Apple Watch Series 9 and Apple Watch Ultra 2 is enough to circumvent infringing on two Masimo patents related to the blood oxygen sensor.
In a filing on Monday with the Federal Circuit, attorneys for Masimo say that “U.S. Customs and Border Protection decided that Apple’s redesign falls outside the scope of” the ITC ruling. Apple’s redesign, however, is to remove the pulse oximetry features from newly sold devices.
We’re waiting on more details from Apple on this situation. In the interim, what this means is that Apple can keep selling the Apple Watch Series 9 and Apple Watch Ultra 2, but those devices will no longer “contain pulse oximetry features.” This applies only in the United States.
I have to admit that if this is accurate, this is surprising. The reason being is that it was rumoured that Apple was trying to find a way around the Masimo patents. But I am guessing that effort failed and now the only option is to yank the feature from unsold Apple Watches. Which means that this doesn’t affect existing users. So if you are in the US and you were thinking of an Apple Watch, now might be a good time to get one.
The thing that surprises me is that Apple for whatever reason is willing to die on this hill. I don’t get why they have taken this stance. But they have. Masimo is a company with a roughly $6.12 billion market cap. Apple could pay them $3 billion and sign some cross licensing agreements as part of the deal along with dismissing any legal action the two parties have against each other and I suspect that Masimo would take that deal without hesitation. So you have to wonder why Apple isn’t going that route? The cynic in me says that if you accept that Apple “Sherlocked” Masimo to get this feature into the Apple Watch, then Apple may be afraid that every other company that they’ve “Sherlocked” over the years will come out of the woodwork looking for their pay day. But that’s just speculation on my part. Though I suspect that it has an air of truth to it.
Let’s see what the next twist in this saga is as it’s going to get real very quickly for Apple.