DJI, the world’s largest manufacturer of consumer and commercial drones, has been involved in several significant lawsuits primarily focusing on its designation as a “Chinese Military Company” (CMC) by the U.S. Department of Defense. The company has also faced patent infringement claims and class action lawsuits related to its products. This article provides a detailed overview of the DJI lawsuits, covering background, allegations, legal claims, impacts, current status, and consumer advice.
Background of the DJI Lawsuit
In 2022, the U.S. Department of Defense designated DJI as a Chinese Military Company under section 1260H of the National Defense Authorization Act (NDAA) for Fiscal Year 2021. DJI vigorously disputes this classification, asserting it is a private company with no ownership or control by the Chinese military and that it exclusively sells consumer and commercial drones, not military equipment.
This designation has led to restrictions on DJI’s ability to contract with federal agencies, termination of business agreements, and increased legislative and regulatory scrutiny. In October 2024, DJI filed a lawsuit against the Defense Department seeking to overturn the designation, alleging it was arbitrary, lacked proper justification, and caused significant financial and reputational harm.
Parties Involved
- Plaintiff: DJI Technology Co., Ltd. and its subsidiaries.
- Defendants: U.S. Department of Defense, including Defense Secretary Lloyd Austin and Deputy Defense Secretary Laura Taylor-Kale.
Details of the DJI Lawsuit Allegations or Claims
- The listing is “unlawful and misguided,” based on flawed and outdated information.
- DJI denied allegations of military ownership, control, or manufacture of military products.
- The Department of Defense allegedly failed to provide rationale or engage in meaningful dialogue with DJI over 16 months.
- Designation resulted in loss of business deals, bans from federal contracting, and harm to DJI’s reputation.
Other Legal Actions Involving DJI
- Patent Infringement Lawsuit: Israeli eVTOL maker Urban Aeronautics sued DJI for infringing patents related to flight control systems in 2024.
- Class Action Lawsuit: DJI faced suit over a defective firmware update that disabled certain Phantom 2 drones, resulting in claims for damages and warranty breaches.
Legal Claims and Relevant Laws
- Administrative Procedure Act (APA): Challenging DoD’s designation procedures and lack of proper rulemaking.
- Patent Law: Addressing alleged infringement of patented drone technologies.
- Consumer Protection Laws: Related to product warranties and defect claims from firmware issues.
Impact of the DJI Lawsuit
The DoD designation and ensuing lawsuit have significantly impacted DJI’s operations, especially in U.S. government and commercial sectors. Contracts have been lost, partnerships severed, and the company faces potential banning from certain markets.
More broadly, the litigation underscores the geopolitical tensions affecting tech companies and the resultant challenges of navigating national security concerns while fostering innovation and international business.
Current Status and Recent Developments
As of late 2024 and early 2025, DJI’s lawsuit is ongoing in the U.S. District Court for the District of Columbia. The company has requested relief to vacate the military designation and restore its business opportunities. The legal battle continues amidst legislative efforts introducing various bans and restrictions on Chinese technology firms.
Patent lawsuits and class action suits continue independently, with negotiations and potential settlements under discussion.
Consumer Advice and Business Considerations
Consumers and businesses using DJI products should stay informed about regulatory changes affecting drone use and availability, especially in government contexts. Reviewing warranty terms and firmware updates is advisable to understand product coverage and risks.
Companies and investors must weigh geopolitical and legal risks when engaging with global technology firms, balancing compliance with strategic interests.
Conclusion: Significance and Future Outlook
The DJI lawsuit against the U.S. Department of Defense represents a critical intersection of technology, national security, and global commerce. Its outcome will influence how emerging technologies from foreign entities are regulated and perceived.
Ongoing litigation and related challenges highlight the complexities for multinational technology firms amidst international tensions, demanding careful legal and operational strategies to safeguard innovation and market access.
