- Masimo Corp’s stocks (NASDAQ:) suffered a drop as a U.S. appeals court put a stop to an import ban imposed by the U.S. government on some of tech magnate Apple’s (NASDAQ:) smartwatches.
- The import ban was initially imposed due to an ongoing patent dispute between Apple and Masimo Corp, a medical tech company.
- Apple appealed to the U.S. Court of Appeals for the Federal Circuit to halt the ban, which was granted. Apple claimed it did not infringe on Masimo’s patents, a charge leveled by the U.S. International Trade Commission.
- Shares of MASI have dropped over 6% and are now slightly above $113 per share after the announcement that the ban would be halted.
Masimo Corp v/s Apple: Patent Dispute Impact on Stock Prices
Masimo Corp‘s shares (NASDAQ:) witnessed a drop on Wednesday following the news that a U.S. appeals court had suspended an import ban by the government on some of Apple’s (NASDAQ:) smartwatches.
Background of the Patent Dispute
The import ban on specific Apple smartwatches initially stemmed from a patent disagreement with Masimo, a medical technology firm. Masimo alleges that Apple took its workers and illicitly incorporated its pulse oximetry technology into the Apple Watches.
The Legal Battle
An emergency request was reportedly filed by Apple to the U.S. Court of Appeals for the Federal Circuit, appealing for a stay on the order. Apple challenged the U.S. International Trade Commission’s decision that claimed Apple had violated Masimo’s patents.
Court’s Response to Apple’s Request
In response to Apple’s request, the appeals court consented to a temporary ban while contemplating the tech giant’s petition for a longer-term pause amid the appeal process.
Impact on MASI Stocks
Following the news that the ban was halted, MASI shares took a hit and are currently more than 6% down, standing slightly above the $113 mark per share.
The patent dispute and the subsequent lifting of the import ban could influence forex traders dealing with tech-related financial assets, including Apple’s stocks and ETFs that hold tech stocks.