In a significant development, the United States International Trade Commission (USITC) has ruled in favor of Masimo (NASDAQ: MASI) in a case against tech giant Apple (NASDAQ: AAPL). The USITC has issued a limited exclusion order for specific Apple Watches, citing infringement on Masimo’s patented light-based pulse oximetry technology. The commission found Apple to be in violation of U.S. trade laws by incorporating Masimo’s proprietary technology into its products.
The exclusion order, set to be enforced following a 60-day Presidential review period, serves as a powerful message that no entity, regardless of its size or global influence, is exempt from adhering to intellectual property rights and trade regulations. Joe Kiani, Founder, Chairman, and CEO of Masimo, emphasized the significance of the ruling, highlighting the company’s commitment to upholding its intellectual property rights and holding Apple accountable for its unlawful use of Masimo’s patented technology.
The USITC decision received substantial backing from a multitude of voices, including academic institutions, antitrust and intellectual property scholars, medical professionals, investors, nonprofit organizations, and members of Congress. These stakeholders collectively underscored the critical need to protect innovation, support fair competition, and safeguard public health, emphasizing the vital role played by intellectual property rights in fostering a climate conducive to continuous technological advancement.
The Consumer Federation of America, in its submission to the ITC, underscored the importance of maintaining a level playing field in the market, particularly emphasizing the ramifications of a dominant corporation infringing on the patents of smaller competitors. The consensus across various sectors is that the enforcement of the exclusion order not only serves as a means to ensure fair competition but also acts as a driver for fostering innovation and safeguarding consumer interests.
