CEO behind Apple Watch halt in sales speaks out and says Apple was 'caught with their hands in the cookie jar'

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  • Apple has announced it's pulling some models of the Apple Watch due to a looming ban.

  • The International Trade Commission said Apple violated the patents of the healthtech company Masimo.

  • Masimo CEO Joe Kiani said he was open to settling, but Apple had not yet contacted the company.

Masimo CEO Joe Kiani has spoken out about the clash between the healthtech company he leads and Apple, a feud that has led to a looming halt on the sale of some Apple Watches.

Apple announced on Monday it would stop selling two models of the Apple Watch after the International Trade Commission ruled their use of blood-oxygen sensing violated patents owned by Masimo. The decision included a proposed ban on imports of the watches starting December 25. Apple said it would pull the models from shelves by December 24.

On Tuesday, Kiani told Bloomberg TV that in 2013, he spoke to Apple because the iPhone company was considering acquiring his company or hiring him.

"These guys have been caught with their hands in the cookie jar," he said.

"This is not an accidental infringement — this is a deliberate taking of our intellectual property," he continued, accusing Apple of hiring more than 20 engineers from his company. "I am glad the world can now see we are the true inventors and creators of these technologies."

Kiani added that Masimo was open to settling with Apple but that the tech giant had not come to the table so far.

"They haven't called," he told the outlet. "It takes two to tango."

In a statement provided to Business Insider, a spokesperson for Masimo said: "After a thorough multi-year legal investigation, the ITC found that Apple infringed certain of Masimo's patented innovations for measuring blood oxygen. The decision to exclude certain foreign-made models of the Apple Watch demonstrates that even the world's most powerful company must abide by the law."

Apple, however, has said it will try to fight the ITC ruling.

"Apple strongly disagrees with the order and is pursuing a range of legal and technical options to ensure that Apple Watch is available to customers," a representative for Apple said in a statement to BI. "Should the order stand, Apple will continue to take all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the US as soon as possible."

Bloomberg reported that the company had also accused Masimo of filing the patent dispute to benefit its own smartwatch, which Apple said was a dupe of the Apple Watch.

The ban on sales is set to at least the Series 9 and Ultra 2 models of the Apple Watch, though the budget Apple Watch SE won't be affected. Bloomberg previously reported that in the meantime, engineers at Apple were scrambling to come up with a software modification in the hopes it could satisfy the ITC without having to remove any hardware from the watch models.

Even if they can come up with a software workaround, Masimo has argued that the hardware of the devices would also need to change to comply with the ruling.

Masimo warns Apple that a swift software update is not enough to allow banned watches back on the market.

 New face on Apple Watch Ultra 2.

New face on Apple Watch Ultra 2.

In a story about Apple having to withdraw two of its watches – the Series 9 and the Ultra 2 – from sale in the US following its loss in a parent law suit with medical tech company Masimo, we were left wondering what Apple’s response would be. After all, the company would surely want the lucrative smartwatches back on sale as soon as possible.

Well, according to Bloomberg, the solution that Apple is proposing does not impress Masimo.

The issue concerned the SpO2 sensors which the watches use to monitor blood oxygen levels. The International Trade Commission (ITC) ruled in Masimo’s favor.

Apple’s engineers are currently making making tweaks to the phones’ software, which would change the way oxygen saturation is recorded and also how the data is delivered to the users. Apple believes these updates will mean the watches no longer violate Masimo’s patents.

Apple Watch Ultra 2
Apple Watch Ultra 2

Masimo begs to differ. It tells Bloomberg that a software change will not be sufficient and the hardware will need to be changed. So even after Apple submits the work-rounds to the ITC, it looks like Masimo will continue to cry foul.

So it looks like we won’t be seeing the two watches back on sale any time soon.

The Series 9 and Ultra 2 will no longer be available from 21 December online and 24 December in retail stores across the States. However, third-party retailers like Amazon and Best Buy can continue to sell the watches while stocks lasts.

The ban affects the watches that have a blood oxygen sensor. Other watches, like the Apple Watch SE, will be available for purchase as usual.

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