The ban on certain Apple smartwatch models came into effect Tuesday, after the Biden administration opted not to veto a ruling on the patent infringements.
But the federal court said the ban order would not take effect pending the appeals process.
After a complaint by Masimo, the United States International Trade Commission (ITC) decided in October to ban Apple Watch models over a patented technology for detecting blood-oxygen levels.
Masimo contends it invented the technology and that Apple poached key employees to win access to the know-how.
Apple last week paused its US sales of Apple Watch Series 9 and Apple Watch Ultra 2 in compliance with the order.
But the iPhone-maker contends that the ITC finding was in error and should be reversed, and appealed the decision in the federal appeals court.
Masimo declined to comment on the development. Apple did not immediately reply to a query from AFP.