DJI, the world’s largest drone maker, has filed a lawsuit against the US Department of Defense (DoD) to remove its name from a list of “Chinese military companies”, saying the link is unfair and unfounded. The company claims that the designation has caused it losses and resulted in lost business deals.
As a result of being listed as a Chinese military company, DJI says it has suffered significant losses, including being denied contracts with US federal agencies. Before its inclusion on this list, DJI controlled about 90% of the commercial drone market in the US, but that share has now dropped to 54%. The company has also reported delays in importing its drones due to allegations of forced labor in China, although DJI has denied this.
In its lawsuit, DJI emphasizes that it is a private company that deals exclusively with commercial and consumer drones and has no ties to the Chinese military. The company says the DoD recognizes that it does not sell military drones, but that being on the list significantly damages its reputation and business.
DJI filed the lawsuit after 16 months of unsuccessful attempts to engage in dialogue with the DoD. The company notes that it was forced to go to court due to the lack of other options to protect its reputation. In addition, DJI has been hit by restrictions imposed by the US Customs Service based on the alleged use of forced labor in the production of drones, although the company denies this.