In a recent turn of events, Apple has won a temporary reprieve for its $18 billion smartwatch business as a U.S. appeals court decided to pause a federal agency's import ban on most of its watch models. The ruling provides a breather for the tech giant, allowing the resumption of sales in the coming weeks while the court evaluates Apple's request to temporarily halt the ban during the appeal process.

This legal battle stems from a decision by the U.S. International Trade Commission (ITC) in October, which imposed an import ban on some versions of Apple's watches, including the Series 9 and Ultra 2 models. The ITC found that Apple had violated patents held by Masimo, a medical technology company based in Irvine, California. The patents in question were related to a blood-oxygen sensor incorporated into certain Apple Watch models.

The Biden administration, despite a deadline on December 25, chose not to overturn the ITC's decision, prompting Apple to take swift action. The company filed court documents asserting that maintaining the ban would cause "irreparable harm" as the affected models, the Apple Watch Series 9 and Ultra 2, constitute its two most popular smartwatches.

In response to the ban, Apple initiated a temporary halt in the sale of the affected watches, both online and in physical stores, starting on December 21 and continuing through December 24. However, the company is actively seeking a resolution to the issue and has submitted redesigned versions of the watches to the U.S. Customs and Border Protection for approval. The decision on the redesign is expected to be made on January 12.

Apple, accounting for nearly 60% of global smartwatch sales according to Counterpoint Research, is a significant player in the market. Despite this, smartwatches make up only about 4.7% of Apple's overall sales, estimated at around $383 billion in fiscal 2023 by investment firm Oppenheimer.

The ongoing legal dispute underscores the intricate intersection of technology, innovation, and intellectual property rights. Apple, vehemently denying any wrongdoing, accuses Masimo of copying rather than innovating. On the other hand, Masimo sees the ITC's decision as a victory for the integrity of the U.S. patent system and a win for American consumers.

As the court considers Apple's appeal, the tech giant remains hopeful for a favorable outcome that would allow the unrestricted sale of its smartwatches in the U.S. market. The implications of this case extend beyond the immediate financial impact on Apple, as it raises questions about the protection of intellectual property in the rapidly evolving landscape of wearable technology.