DJI to stop selling most Mavic due to patent infringement?

Camino Ken · May 19, 2020

First, let me state that I am not a lawyer. From what I could research the ITC judge makes recommendations. The final authority lies with the President to impose the penalty. Also, if the parties disagree they can use the Federal Appeals Court system as a recourse.

Additionally, Autel Robotics is technically a US company but is wholly owned by Autel Intelligent Technology Corp., Ltd based in Shenzhen, China. They are a publicly held company with 1200 employees and 2019 revenue of about $175M USD. Just for comparison, DJI is around $3 billion USD.

MAvic_South_Oz · May 19, 2020

Camino Ken said:
Additionally, Autel Robotics is technically a US company but is wholly owned by Autel Intelligent Technology Corp., Ltd based in Shenzhen, China. They are a publicly held company with 1200 employees and 2019 revenue of about 175,000 USD. Just for comparison, DJI is around 3 billion USD.

1200 employees and US$175000 revenue ?
Something up there, source ?
I can't see a company existing, even if that was nett profit.

I don't think anyone has a snowballs chance in . . . a Sahara desert summer (ha ha) of catching DJI in my lifetime, or the next generation(s)

Camino Ken · May 19, 2020

MAvic_South_Oz said:
1200 employees and US$175000 revenue ?
Something up there, source ?
I can't see a company existing, even if that was nett profit.

I don't think anyone has a snowballs chance in . . . a Sahara desert summer (ha ha) of catching DJI in my lifetime, or the next generation(s)

Autel Company Profile: Stock Performance & Earnings | PitchBook

Information on stock, financials, earnings, subsidiaries, investors, and executives for Autel. Use the PitchBook Platform to explore the full profile.

pitchbook.com

They are an Industrial company that makes automotive test equipment. Low revenue but high margins. I could not see the breakout of the drone part of the business.

MAvic_South_Oz · May 19, 2020

Camino Ken said:
Autel Company Profile: Stock Performance & Earnings | PitchBook

Information on stock, financials, earnings, subsidiaries, investors, and executives for Autel. Use the PitchBook Platform to explore the full profile.

pitchbook.com

They are an Industrial company that makes automotive test equipment. Low revenue but high margins. I could not see the breakout of the drone part of the business.

Oh, that's US$176.4 Million

US$49 Million nett.

They must be selling SOMETHING, SOMEWHERE with that turnover, not EVOIIs though.

Thanks for the link, clears up definite China ownership, though of course Autel might provide a lot of US jobs, which is good and bad in ways.

Camino Ken · May 19, 2020

MAvic_South_Oz said:
Oh, that's US$176.4 Million
US$49 Million nett.

They must be selling SOMETHING, SOMEWHERE with that turnover, not EVOIIs though.

Thanks for the link, clears up definite China ownership, though of course Autel might provide a lot of US jobs, which is good and bad in ways.

Oops, a comma error. My bad. Fixed original post.

gnirtS · May 20, 2020

Why DJI probably won't be banned from selling drones in the US

This sky-based patent war still has legs

www.techradar.com

TheRock · May 20, 2020

This post about MA2 Props seems to fit here:

ian408 · May 20, 2020

silverdragon said:
The day that DJI can not sell or export any more drones that are affected how are they going to deal with the people that have replacements due and drones already ordered Into the US.

What will they do if Autel gets its way and they're banned altogether?

Gadget Inspector · May 20, 2020

My friend Zac Elliott is a licensed attorney so I thought I'd have him breakdown this recent apparent "win" by Autel. What does all of this really mean for DJI?

Nimrod · May 20, 2020

MAvic_South_Oz said:
Yep, it could very well be challenged successfully if DJI lawyers do their research right.
Bayonet and opposite force physics could / should be defendable, they could argue helicopter type rotational control.

DJI will certainly stall and dig, but then they should have already to this stage of the matter too, so who knows.
There is a lot of anti Chinese sentiment around now too, which could have an effect (it shouldn't, but you know, human prejudices are real).

I had to defend one of our business concepts, oh about 15 years ago, couple of likely lads and their lawyers with a "new" product come along and ask us to cease and desist marketing our convex glass products, as it infringed their acrylic convex products patent filed a few years before.
Trouble is, we had been making our products for about 20 years previously, told them in no uncertain terms through our legal counsel if they persist, we will hit them with pre existing technology and seek to make their patent invalid, as well as seek damages and legal cost.
End of problem

Autel's mother company is Chinese....this is one Cinese company suing another Chinese company

Marv McCarthy · May 20, 2020

Moozer said:
Just read an article that says the Autel prevailed in a patent infringement suit against DJI. The article says that the ITC (International Trade Commission) administrative law judge is recommending that DJI be prohibited from importing or selling all infringing products, including al Mavic models except the Mavic Mini. Anyone else hear of this?

DJI will most likely financially settle with Autel without pulling stock. The Autel pricing is still on their web site, as of right now. The dual still says "contact" etc. A few shops have stock from what I understand although I don't pay close attention to it.

redserv · May 20, 2020

dji is here to stay. this is just a small hurdle that people want to make it something else

sar104 · May 22, 2020

This doesn't appear to be going too well for Autel:

Latest Development in the DJI-Autel Disputes

On August 30, 2018, Autel Robotics USA (“Autel”) requested the ITC to commence an investigation pursuant to Section 337, against SZ DJI Technology Co. Ltd. and several related entities (collectively, ...

www.finnegan.com

dirkclod · May 22, 2020

Bottom line..

.
DJI’s sales in the U.S., therefore, will not be affected by Autel’s claims.

Rchawks · May 22, 2020

What will probably happen is Autel will receive royalty payments for X number of years and sales will continue as before if it's determined that they have been wronged by DJI. MHO.Ah but then they are both a chinese company, ?

ThorDar · May 23, 2020

Rchawks said:
What will probably happen is Autel will receive royalty payments for X number of years and sales will continue as before if it's determined that they have been wronged by DJI. MHO.Ah but then they are both a chinese company, ?

Likely they won't get anything. The patents they sued over have been now ruled invalid.

zocalo · May 23, 2020

ThorDar said:
Likely they won't get anything. The patents they sued over have been now ruled invalid.

Other than a bill from their legal firm, you mean? Once again, the only real winners here are going to be the lawyers.

Win or lose, I can't imagine this kind of protracted dispute is really doing all that much other than provide a distraction from what they really ought to be doing right now - getting the Evo2 to market in volume and generating some revenue before DJI releases the Mavic 3 and steals all their thunder.