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Earlier this month, we reported on DJI’s fervent rejection of a recent U.S. District Court ruling. On Monday, the popular drone maker told Tom’s Hardware it is going to appeal against the decision, which upheld its designation as a “Chinese Military Company” by the U.S. government. The decision by DJI isn’t a surprise, as it seeks to defend its place in one of the most lucrative markets it has developed.
This decision to appeal is just the latest chapter in a tug-of-war between DJI and the U.S. Department of Defense (recently rebranded to the Department of War). The crux of the issue is that the U.S. authorities believe that DJI is owned or controlled by the Chinese Communist Party (CCP) and has Chinese military links. DJI strongly denies it has any such connection(s).
“DJI, the global leader in civilian drones and creative camera technology, today announced that it has filed an appeal with the United States Court of Appeals for the D.C. Circuit following the ruling of the District of Columbia District Court in DJI v. U.S. Department of Defense,” DJI said. “While the Court upheld the Department of Defense’s (DoD) designation of DJI as a ‘Chinese Military Company,’ it also made several critical findings that reaffirm DJI’s long-held position that it is not owned by, controlled by, or otherwise affiliated with the Chinese government or military.”
DJI reiterated that the court had rejected all but two of the DoD’s allegations. DJI further claims that both of the allegations that ‘stuck’ are extremely tenuous.
Two sticking points
Specifically, DJI asserts that its holding of National Enterprise Technology Center (NETC) status in China is a widely granted status, which several major U.S. companies also hold. “This does not suggest any military connection,” underlines DJI’s statement.
Secondly, the DoD’s line that DJI products have “substantial dual-use applications” also applies to many off-the-shelf commercial technology products, says the drone maker. This isn’t indicative of any Chinese military use of or affiliation, asserts DJI.
A DJI spokesperson added that the firm respects the court’s process, but was disappointed by the ruling. It is also highlighted that DJI was the first drone company to “publicly denounce and actively discourage combat use of its products, and it has never manufactured military equipment nor marketed drones for combat.”
Audit concerns
DJI’s drone and camera products weren’t banned for sale/distribution by the last ruling. But the clock is ticking on a process where companies on the FCC’s Covered List, deemed potential national security risks, will have to pass a security audit to continue operating in the U.S.
We don’t yet have a date for when the latest episode of DJI vs DoD in court will begin.
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