One of the biggest stories in the technology sector over the last week was a ban to certain models of the Apple Watch, a key product from Apple Inc AAPL. The ban comes with a patent battle, a court appeal and more decisions to come.
Here's how President Joe Biden could find himself having a conflict of interest in the latest battle.
What Happened: First introduced in 2015, the Apple Watch is a key product for the technology giant that has had several models and features released over the years.
The inclusion of blood oxygen-reading technology on Apple watches infringed on patents held by medical company Masimo Corporation MASI according to a ruling by the U.S. International Trade Commission (ITC).
The decision led to a ban of certain models of Apple Watches in the United States. Although the White House had the power to reverse this ban, U.S. Trade Representative Katherine Tai chose not to intervene. However, the ban was subsequently suspended by a federal appeals court, permitting Apple to resume selling these watches.
President Biden is connected to Masimo, according to a report from the New York Post, but it is not known if he was personally involved in any decision over the ban or a decision not to block the ITC decision.
Masimo CEO and founder Joe Kiani is a Democratic donor and supporter of Biden. The president has previously called Kiani "one of my closest friends," which could spark concerns of a conflict of interest.
According to the New York Post, Kiani has donated $3.39 million to the Democratic Congressional Campaign Committee, $1.14 million to the Democratic National Committee, $1.09 million to the Biden Victory Fund and $1.0 million to the Unite the Country Pro Biden PAC since 2018.
Kiani ranks among the top donors to Biden's campaign and is a key Democratic Party donor.
Hunter Biden previously spent time at a vineyard owned by Kiani while he was being investigated. Biden's niece Caroline Biden, who has been involved with several controversies in recent years, was offered an $85,000 per year job by Kiani according to leaked emails and texts on Hunter Biden's laptop.
Kiani was appointed to the President's Council of Advisors on Science and Technology in 2021, giving him a platform to offer policy recommendations to Biden. Kiani's daughter Catherine also received a job in Jill Biden's office.
A Masimo spokesperson has shut down any notion of Kinai contacting President Biden over the watch decision, saying the medical company never lobbied Biden or Tai. The White House, Tai and Apple did not return comments to The Post.
Related Link: ‘They Haven’t Called:’ Masimo CEO Awaits Apple’s Move In Watch Patent Infringement Dispute
Why It's Important: The report from The Post details ways that the Bidens and Kianis have helped each other in the past, which could put a bigger target on the high-profile case between Apple and Masimo.
The ITC ruling could lead to Apple needing to license the technology from Masimo or work on other solutions to offer the medical technology on its devices.
"This dispute has never been about money for Masimo," the company spokesman told The Post. "The company's motivation has always been and remains to hold Apple accountable for infringing Masimo's patents and to restore integrity to the marketplace."
White House spokespersons said the decision was being closely monitored and the White House was actively "tracking" the case, before a decision to not step in was made.
Benzinga previously shared that presidents can intervene on import bans, but the move is rare. In 2013, President Barack Obama stopped a ban of iPhone and iPad models due to a dispute with Samsung Electronics Co.
The appeals court halted the ban on Wednesday and is giving the ITC until Jan. 10 to respond to a request from Apple to hold a longer pause during its appeals process.
Wedbush analyst Dan Ives estimates the ban of the Apple Watch models could lead to missing out on $300 million to $400 million in holiday sales for Apple. The Apple Watch business had an estimated $17 billion in revenue in the last year.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
