Apple Watch sales ban is put on hold by US appeals court

Apple Inc. won a ruling temporarily pausing a US International Trade Commission order banning sales of some of its smartwatches in the US while the company seeks a longer stay pending its appeal of the restriction.

An appellate court in Washington issued the interim stay Wednesday a day after Apple sought the delay. It gave the commission until Jan. 10 to respond to Apple’s request for a longer stay during the court challenge.

Apple, seeking to defend a business that generates roughly $17 billion a year, appealed the ban of its smartwatches after the White House refused to overturn the measure. The ban was triggered by a patent dispute with medical technology maker Masimo Corp. 

The ITC determined in October that Apple violated two Masimo health-technology patents with a blood-oxygen sensor in its watches. The White House had 60 days to review the import ban, with the decision resting with US Trade Representative Katherine Tai.

Masimo shares fell as much as 6.3% on the pause.

Apple had already stopped selling its Series 9 and Ultra 2 watches in its online store and US retail outlets. Online sales were halted Dec. 21, and the last day to buy a new watch at an Apple retail store was on Christmas Eve.

Apple has developed a software update for the Apple Watch that it believes will mitigate the issue. It has submitted the design of that update to the US customs agency and, in a filing Tuesday, said the government is scheduled to decide Jan. 12 whether to approve or reject the changes.