DJI loses lawsuit over classification as Chinese military company | TechCrunch

"U.S. District Judge Paul Friedman ruled Friday that the DoD had provided "substantial evidence" that DJI contributes "to the Chinese defense industrial base." Pointing to the use of modified DJI drones in the conflict between Russia and Ukraine, Friedman wrote, "Whether or not DJI's policies prohibit military use is irrelevant. That does not change the fact that DJI's technology has both substantial theoretical and actual military application.""

"Other government agencies, including the Department of Commerce and the Treasury Department, placed DJI on similar lists before it was added to the DoD list in 2022. When DJI filed the lawsuit last year, the company said it was "not owned or controlled by the Chinese military" and that "the DoD itself acknowledges that DJI makes consumer and commercial drones, not military drones." The lawsuit also said the company had "suffered ongoing financial and reputational harm, including lost business" as a result of the listing."

"The company told Reuters that it's considering its legal options and said Judge Friedman's decision was "based on a single rationale that applies to many companies that have never been listed."DJI faces other legal hurdles in the United States, including a potential ban on sales starting in December unless a national security agency determines that its drones do not "pose an unacceptable risk to the national security of the United States.""

A federal judge denied DJI's request to be removed from a Department of Defense list, finding the DoD provided substantial evidence that DJI contributes to China's defense industrial base. The judge cited use of modified DJI drones in the Russia-Ukraine conflict and stated that corporate policies against military use do not negate substantial theoretical and actual military applications. The judge also rejected some other DoD rationales for the listing. Other U.S. agencies had placed DJI on similar lists before 2022. DJI asserted it is not owned or controlled by the Chinese military, said it makes consumer and commercial drones, and reported financial and reputational harm from the listing. DJI is considering legal options and faces a potential U.S. sales ban pending national security review.

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