DJI faces patent-infringement complaint in US market from rival Autel Robotics

China’s SZ DJI Technology Co, the world’s largest maker of non-military drones, is at risk of not selling its products in the US as a smaller rival filed a patent-infringement complaint in Washington on August 30.

The rival, Autel Robotics, a US subsidiary of Chinese technology company Autel Intelligent Technology Corp, sought an investigation invoking Section 337 of the US Tariff Act of 1930 toward DJI, the Chinese Ministry of Commerce said on Tuesday.

The statement has attracted much public attention in the context of ongoing trade friction between China and the US, since the 337 investigation process was often used by the US against Chinese companies.

Autel wants the US International Trade Commission (ITC) to ban the import and sale of DJI drones, requesting the commission to issue a limited exclusion order as well as a cease and desist order.

“A limited exclusion order means banning imports, while a cease and desist order means banning sales. If it proves that DJI has infringed Autel’s patents, it will be banned from selling its products in the US,” Wang Zhengzhi, partner of GlobeLaw Law Firm, told the Global Times Wednesday.

Autel also asked the ITC to impose a bond during a 60-day review period, which would not change the results of the investigation in the vast of majority of cases, according to Wang.

Both DJI and Autel did not offer comment on the development of the event as of press time.

According to the US Federal Aviation Administration, approximately 1.6 million civilian drones will be sold in the US in 2018 alone, which will take the unmanned aircraft market to $4.4 billion.

According to foreign reports, right now, it is rare for a federal court to block sales, even when it involves competing products (or services). However, there is the possibility of a ban if the ITC finds the products infringed US patents.

Even the accusation is proved wrong, it will have a big impact on DJI since its business in the US market takes up a large portion, Wang said.