Chinese drone rivals DJI and Insta360 are set to go head-to-head in the courts. DJI has started a lawsuit alleging that Insta360 has infringed its patents. However, Insta360 has hit back swiftly with a robust response.
What has DJI done?
DJI has filed a lawsuit with Shenzhen Intermediate People’s Court. This is the area of China where the two companies are based. The claim alleges that Insta360 has infringed upon six of DJI’s patents. These cover the technology for drone flight control, structural design and image processing. DJI has also claimed that the patents are for inventions made by some of its former employees who went to work for Insta360. Under Chinese law, innovations created by an employee within a year after they left a company are legally deemed to be the property of that previous employer.
What has Insta360 said?
Insta360’s founder JK Liu has responded to DJI’s lawsuit with a social media post setting out his position. He denied that former DJI employees had created the patents in question. Liu says, “The evidence shows that all ideas and innovations were independently created at Insta360.” He goes on to claim that, in relation to the patents relating to flight control, “This was my idea, and I was deeply involved in refining and approving it.”
In addition, Liu says, “This patent isn’t very useful, so the feature wasn’t implemented. If DJI wanted this patent, they could’ve just asked for it.”
Product roadmap
Liu goes on to claim that most of the drone-related patent applications which are the subject of DJI’s action are more than four years old. He also says that Insta360 didn’t use most of the patents. Going on the offensive, Liu alleges that “DJI’s products could fall within the scope of 28 Insta360 patents.” However, he says that Insta360 didn’t take legal action because, “As a smaller company with limited resources, we prioritize innovation over litigation.” Liu finishes by highlighting the upcoming launch of 7 or 8 new products, including gimbal cameras, lavalier microphones, and another drone.
What we think
DJI is the market leader in consumer drones in China with a 73% market share. The company is also about to launch its Avata 360 drone, which is a direct competitor to the Antigravity A1. Antigravity is a drone brand that Insta360 formed in collaboration with third party companies. Whether DJI is serious about its lawsuit, or if it is just a shot across the bows of Insta360 remains to be seen. Such claims aren’t uncommon in business and are often settled quietly and amicably. However, Insta360 seems to be ready for a fight if DJI wants one.
