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Chinese Drone Maker Faces Patent and Political Pressure in US

DJI, the world's leading drone manufacturer, has been facing multiple challenges in the US market, including patent disputes and political pressure from the US government.

DJI has been sued by several US companies for allegedly infringing their patents related to drone technology. Most of these lawsuits were initiated by companies that have little or no drone business, and are seen as attempts to gain unfair economic benefits or market advantages by abusing the intellectual property system.

One of the most prominent cases was filed by Autel Robotics, a subsidiary of Shenzhen-based Daotong Technology, which requested the US International Trade Commission (ITC) to launch a 337 investigation against DJI and ban its imports and sales of certain products in 2018. However, in 2020, the US Patent and Trademark Office (USPTO) declared all three patents held by Autel Robotics invalid, and the ITC ruled that DJI did not infringe any of Autel Robotics' patents.

Another notable case was filed by Deere & Company, an American aerospace company, which accused DJI of infringing its two patents related to drone technology in 2020. A jury in Texas awarded Deere & Company $279 million in damages in April 2021. DJI strongly opposed the verdict and said it would seek all possible ways to defend its legitimate rights.

In addition to patent litigation, DJI also faced political pressure from the US government, which added DJI and three other Chinese technology companies to its export control Entity List in December 2020, citing their alleged involvement in activities related to China's military modernization or human rights abuses. This move effectively banned US companies from exporting or re-exporting sensitive technology or goods to these Chinese entities without a license.

The Entity List designation had a significant impact on DJI's business in the US market, where it had a dominant share of 74% in 2018, according to Skylogic Research. According to US media reports, DJI's sales in the US dropped by nearly 80%, and many state and local governments also stopped purchasing and using DJI's products. Moreover, DJI faced security scrutiny and trust crisis from the US government and enterprises, which accused DJI of posing data leakage and espionage risks.

DJI denied these allegations and said its products complied with international standards and industry best practices, and did not pose any security threats. DJI also introduced a series of security measures, such as data security mode, local data mode, government edition drones, etc., to enhance users' confidence and trust in its products. DJI also actively communicated with the US government and regulatory agencies, seeking solutions and cooperation opportunities.

Despite these challenges, DJI did not give up or retreat from the US market, where it still maintained a leading position and sought various solutions and cooperation opportunities. This provided a useful reference and inspiration for other Chinese technology companies going global: only by strengthening intellectual property protection awareness and capabilities can they succeed in overseas markets.