Apple Inc (NASDAQ:AAPL, ETR:APC) shares opened higher on Thursday after a US appeals court paused a government commission's import ban on some Apple smartwatches following a patent dispute with medical-technology company Masimo.
The iPhone maker’s latest smartwatches can resume being sold in the US following the court ruling.
Apple had filed an emergency request asking the US Court of Appeals for the Federal Circuit to halt the order after appealing the US International Trade Commission's (ITC) decision that it had infringed Masimo's patents.
The US trade body had barred imports and sales of Apple watches with technology for reading blood-oxygen levels after Masimo had accused Apple of poaching its staff and technology.
Earlier this week, the White House upheld a ban on sales and imports of the Apple Series 9 and Ultra 2 watches.
"This is a big win for Apple that was unexpected by many given the legal issues involved in this patent battle," Wedbush Securities analyst Dan Ives told the media outlet.
"Masimo now has a big fight ahead. We expect an appeals case in January to be a big moment."
Customs and Border Protection (CBP) has set a target date of January 12 for its decision on whether redesigned versions of its watches infringe Masimo's patents and can be imported, Apple noted.
An import ban could cost Apple from high hundreds of millions of dollars to very low billions of dollars, Creative Strategies CEO Ben Bajarin previously stated.
Apple's wearables, home and accessory business, which includes the Apple Watch, AirPods earbuds and other products, generated US$8.28 billion in revenue during the third quarter of 2023, according to the company.
Shares of Apple climbed 0.6% as the market opened on Thursday.