Masimo Sues U.S. Customs Over Apple Watch Importation

Masimo has filed a lawsuit against U.S. Customs, accusing the agency of allowing Apple to import Apple Watches with Masimo's patented blood-oxygen technology despite a previous ban from the U.S. International Trade Commission. Masimo claims that Customs quietly reversed its decision in August, allowing Apple to resume imports. The timing coincides with Apple's recent software update that reactivated the blood-oxygen tool on its Series 9, Series 10, and Ultra 2 watches.

Masimo Corp. (MASI) has filed a lawsuit against U.S. Customs and Border Protection (CBP) over a decision that allowed Apple Inc. (AAPL) to import Apple Watches with blood-oxygen feature technology during a patent dispute between the companies. The lawsuit alleges that CBP improperly reversed its own ruling, enabling Apple to resume imports despite a previous ban from the U.S. International Trade Commission (ITC) [1].

The dispute centers around Masimo's patents related to light-based pulse oximetry technology, which Apple integrated into its Apple Watch Series 9, Series 10, and Ultra 2 models. In October 2023, the ITC ruled that Apple's watches infringed on Masimo's patents, leading to a ban on their importation [2]. However, in August 2025, CBP reversed its ruling, allowing Apple to import the devices with the blood-oxygen feature reactivated [3].

Masimo's lawsuit argues that CBP acted unlawfully by reversing its decision without notifying the company and without a material change in circumstances. The company seeks to halt CBP's ruling and reinstate the ITC's ban on Apple Watches with the blood-oxygen feature [3].

The timing of the lawsuit coincides with Apple's recent software update that reactivated the blood-oxygen tool on its Series 9, Series 10, and Ultra 2 watches. Apple had previously disabled the feature on U.S. models due to the patent dispute [1].

Apple's stock dropped 1.97% during regular trading and slipped an additional 0.18% in after-hours trading following the announcement of the lawsuit [1]. The company has not yet responded to requests for comment.

References:
[1] https://www.benzinga.com/markets/tech/25/08/47252149/apple-restores-blood-oxygen-tracking-to-watch-after-customs-ruling-masimo-strikes-back-with-lawsuit-over-patent-rights
[2] https://www.mobihealthnews.com/news/apple-restores-blood-oxygen-feature-watch-series-9-series-10-and-ultra-2-after-us-ban
[3] https://seekingalpha.com/news/4487754-us-customs-sued-by-masimo-over-approval-of-apple-watch-imports-with-blood-oxygen-feature