DJI sues rival Insta360 for alleged patent infringement ahead of new drone debut

Chinese drone giant DJI has filed a lawsuit against its crosstown rival Insta360 for alleged patent infringement, a move that was made public three days ahead of the launch of DJI’s first 360-degree drone, a niche pioneered by its smaller competitor. The lawsuit, filed recently with the Shenzhen Intermediate People’s Court in the southern tech hub where both companies are based, involved six patents covering critical technologies including drone flight control, structural design and image processing, according to reports by Chinese media on Monday. DJI claimed that some of the patents were based on inventions made by one or more former employees within one year of their departure from the company, according to reports from government-backed outlets including Jiemian and Securities Times. Under China’s intellectual property laws, innovations created within one year of an employee’s retirement or departure – if related to their previous regular duties – are legally considered to have been created for the original organisation. Insta360 founder and CEO Liu Jingkang said on Weibo on Monday that, after an internal review of the concerned patents, “the available evidence indicates that these are all ideas and innovations generated within Insta360”. DJI did not immediately responded to a request for comment on Monday. The Shenzhen court could not be reached for comment. Shares of Shanghai-listed Insta360 closed down nearly 7 per cent to 181.15 yuan (US$26) on Monday. DJI is privately owned. DJI’s legal action comes ahead of its planned launch of the Avata 360 drone on Thursday, directly challenging a niche first tapped by Insta360-backed brand Antigravity. DJI previewed the “full-view” drone in November. Antigravity, a brand established last year by Insta360 in collaboration with third parties, unveiled its A1 drone in August last year and later began sales with prices starting at US$1,599. The product, an 8K full-degree drone, was seen as Insta360’s challenge to DJI’s dominance in consumer drones. DJI leads the consumer drone market in China with a 73 per cent share, according to a 2025 report by market research firm LeadLeo. Globally, DJI commands a similar lead. DJI has launched several cameras that are eating into the market of Insta360, best known for its omnidirectional cameras. Last July, the drone giant released the Osmo 360 – its first entry in the 360-degree imaging market. Two months later, it rolled out Osmo Nano, a small camera widely compared to Insta360’s Go Ultra. In 2025, DJI accounted for 62 per cent of the global market for handheld smart cameras, including action cameras and full-degree models, with Insta360 and GoPro in second and third spot with 20 and 11 per cent, respectively. But Insta360 “maintains its leading position” in 360-degree cameras, according to market research firm International Data Corporation. Insta360’s Liu said on Weibo that DJI’s Osmo 360 and Osmo Nano resembled his own products, which could be subject to patent disputes, including 11 patents on hardware and structural features. But Insta360 did not take legal action because “as a smaller company with limited resources, [we] prioritise R&D over legal litigation.”