Apple Inc. is preparing a rescue plan for the $17 billion company that includes software updates and other possible workarounds, as the company faces a US ban on its smartwatches in just a few days.

The company’s engineers are working quickly to modify the blood oxygen level measuring device’s algorithms—a feature that Masimo Corp. claims violates its patents. People acquainted with the development have stated that they are changing the way the system calculates oxygen saturation and displays the information to clients.

Sales in the EU and Ireland are expected to continue unaffected by the sales prohibition; it solely affects the US.

Apple’s Plan of action

The action follows an October ruling by the US International Trade Commission, which found that Apple Watches violated on the patent rights of medical technology company Masimo and potentially prevent Apple from importing the devices.

The feature is undergoing a presidential review process, which will not conclude until December 25. According to Apple, the business is taking proactive measures to comply in the event that the verdict is upheld.

Information from inside Apple indicates that the company thinks software upgrades, as opposed to a more involved hardware redesign, will be sufficient to get the device back on shop shelves.

However, the hardware-related patents that are at the center of the controversy include ones that assess blood oxygen levels by emitting light into the skin.

According to Masimo, a software update won’t be enough. The manufacturer of medical equipment stated, “The hardware needs to change.”
According to an Apple representative, the business is putting together a workaround to submit to the US customs agency, which is in charge of authorizing modifications to allow a product to be reintroduced onto the market.

This is a risky technological endeavor that Apple has never done before. Even if the products of the iPhone manufacturer have already been prohibited in several nations due to legal problems, this prohibition would negatively impact one of Apple’s largest revenue streams in its home country, especially around Christmas.

An International Trade Commission prohibition is set to take effect on December 25 barring a last-minute veto by the White House.

Apple’s Settlement Plan

Apple has paused the sales of its Series 9 and Ultra 2 smartwatches after an order in October from the US International Trade Commission.

The organization said that it would stop selling the watches on its website on December 21 and at roughly 270 brick-and-mortar outlets by Dec 24.

Apple may choose not to go down that path and instead reach a settlement with Masimo. Additionally, it doesn’t seem like the two businesses have interacted in that way. Apple is currently concentrating on changing its technology and attempting to gain the favor of regulatory bodies.

Apple is developing a number of technological and legal alternatives in case the ban is upheld. It has already started getting stores ready for the shift. It provided updated signage to its retail locations that features images of the Apple Watch but excludes images of the Series 9 and Ultra 2, two models that are prohibited. There will still be the company’s entry-level SE watch available.

According to Edge’s co-founder and CEO, Evan Zimmerman, these kinds of disagreements are usually resolved before they reach this stage. Edge produces software for patent drafting.

“These kinds of conflicts that result in import limitations are uncommon and are frequently employed as bargaining chips in settlement talks,” the speaker stated. According to Zimmerman, the company may find it difficult to settle the disagreement through software changes because of how extensive Masimo’s patent portfolio is.

However, he suggested Apple might have a strong case because the software dictates how the gadget functions.
It will take some time for the corporation to really bring the new technology to market, even though they are working on both software and hardware fixes.

There’s good reason behind the length of Apple’s internal software testing process. The manufacturer must guarantee that any modifications won’t interfere with other smartwatch functions. Because of their intended medicinal use, the modifications might also require more testing.

Located in Irvine, California, Masimo Corporation is a consumer electronics and health technology company. The company’s main products include patient monitoring equipment and technologies, such as telehealth platforms, patient management, and non-invasive optical sensors. By acquiring Sound United in 2022, the firm entered the home audio market and started producing wearable’s with a health focus.

With the festive season right on the loose, let’s see if the tech giants will be able to bring back its glory to its home country and win over the hustle.