Why the Apple Watch Is Being Banned – and How Apple Can Avoid It

Apple Watch continues to outperform its competition globally, arguably because of the continuous expansion of its integration and its features. With this growth however, Apple Inc. has encountered some tough objections from the U.S. International Trade Commission (ITC). The company was recently forced to suspend its sales for certain watches as a result of the ITC ruling that Apple had infringed two patents from medical device maker Masimo.

Once the ITC settles a lawsuit, the U.S. President and the U.S. Trade Representative (USTR) review the case and if they choose, they can decide to VETO the decision. Finnegan partner Smith Brittingham said overturning such a decision is highly improbable.

“It’s unlikely that the import exclusion order will be disapproved by the USTR and the president,” Smith told The Verge. “The only real answer would be, ‘Well, it’s Apple.’”

Apple has indicated that it plans to appeal this decision, which could be a long 18-month process. Additionally, the company may ask for a stay on the import ban, however, Smith said that’s not likely to be granted because Apple would have to prove that it would be irreparably harmed. In other words,  Apple would have to make a convincing case that it would go out of business if it can’t sell the Apple Watch.

The impact of this ban will likely not harm the business model of Apple as they are still able to sell their watches outside of the United States. Their entry-level SE watch is also unaffected by the ban as it doesn’t have the infringing capability. According to Smith, Apple could redesign its Apple Watch to avoid the infringed patents until the appeals process is done.

“Apple is a tough nut to crack,” said Smith, noting that Apple is one of the most sued companies in Silicon Valley. “I think they tend to hold out as long as possible in order to make it less appetizing to sue Apple.”

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