Can I just check my understanding of 108.37 (b)?
To me that is saying every aircraft with people on board (the crew at least) that is below 500ft AGL and not near buildings and which DOES NOT have ADB-S etc. must give way to aircraft that do not have people on board (drones?).
That seems so daft to me that I am sure my understanding is incorrect but I do not see how it is incorrect.
Essentially yes. It is a significant change from current rules, but not necessarily daft. In fact it's arguably the best solution for integrating sUAS BVLOS and VLOS into low airspace.
108.37 Operation near aircraft; low altitude right-of-way rules
(a) Every uncrewed aircraft operating below 500’ AGL and away from structures, must yield the right of way to all aircraft, airborne vehicles, and launch and reentry vehicles equipped and broadcasting their position via ADS-B out or Traffic Awareness Beacon Systems (TABS). Yielding the right of way means that the small uncrewed aircraft must give way to the aircraft or vehicle and may not pass over, under, or ahead of it unless there is adequate separation.
(b) Every crewed aircraft, airborne vehicle, and launch and reentry vehicle operating below 500’ AGL and away from structures, that is not equipped and broadcasting their position via ADS-B out or TABS must yield the right of way to all uncrewed aircraft. Yielding the right of way means that the crewed aircraft or vehicle must give way to the uncrewed aircraft and may not pass over, under, or ahead of it unless there is adequate separation.
(c) Every uncrewed aircraft operating below 500’ AGL and within 100 feet of a structure has right of way over all other aircraft, airborne vehicles, and launch and reentry vehicles.
(d) No person may operate an aircraft or an uncrewed aircraft in a manner that creates a collision hazard.