Apple Inc. (NASDAQ:AAPL) has reintroduced the blood-oxygen monitoring feature to its Apple Watch lineup after U.S. Customs and Border Protection approved imports of the devices — a decision that medical technology firm Masimo Corp. (NASDAQ:MASI) is now challenging in court.
Masimo Accuses Customs Of Overreach
On Wednesday, Masimo filed a lawsuit in Washington, D.C., federal court, accusing Customs of improperly reversing its prior ruling without notifying the company, reported Reuters.
The lawsuit comes just days after Apple announced the return of the feature, which had been disabled on U.S. models amid a long-running patent dispute.
Masimo alleged that Customs had no authority to effectively create what it called "loopholes" in an existing International Trade Commission exclusion order.
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That order, issued in 2023, blocked imports of Apple's Series 9 and Ultra 2 watches after regulators found Apple infringed on Masimo's pulse oximetry patents.
"CBP's function is to enforce ITC exclusion orders, not to create loopholes that render them ineffective," Masimo said in its filing.
The company also argued that it only discovered Customs' Aug. 1 decision after Apple announced the reinstatement of the blood-oxygen feature last week.
Apple Watch Health Tech At The Center Of Dispute
Apple first added blood-oxygen monitoring to its smartwatches in 2020, marketing the feature as a tool to track respiratory health. The technology, similar to clinical finger-clip oximeters, uses light sensors to measure oxygen saturation.
Masimo has accused Apple of poaching employees and stealing trade secrets to integrate the feature into the Apple Watch. Beyond the ITC case, Masimo has multiple lawsuits pending against Apple for patent infringement and trade secret theft.
Apple has continued to sell redesigned watches in the U.S. without the blood-oxygen function, while unaffected models remained available internationally. On Aug. 14, Apple said the feature would return via a software update for Series 9, Series 10 and Ultra 2 devices running watchOS 11.6.1 paired with iOS 18.6.1.
The Stakes For Apple In Digital Health
Apple has positioned the Watch as a critical health and wellness device as it explores broader ambitions such as noninvasive glucose monitoring.
Rivals, including Samsung Electronics Co. (OTC:SSNLF) and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, are also advancing health-focused smartwatch features, intensifying competition in the wearable space.
Masimo is now asking the court to halt Customs' ruling and reinstate the block on Apple Watches with blood-oxygen tracking.
Apple did not immediately respond to Benzinga's request for comments.
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