DJI, the world’s leading manufacturer of civilian drones, has escalated its dispute with the Federal Communications Commission (FCC) by filing an appeal in the Ninth Circuit after the FCC placed many DJI products on its “covered list,” which the FCC uses for telecommunications equipment it deems an unacceptable national security risk. DJI says the decision effectively prevents it from “marketing, selling, and importing new products into the United States,” and that the order covers DJI communications and video surveillance equipment. Rather than waiting for the FCC to decide whether it will reconsider, DJI says it is appealing the decision now to protect its business and all of the consumers and businesses that reply on its products.

For drone users and manufacturers, the practical takeaway is that a regulatory designation can become an immediate operational and commercial disruption, even before the courts resolve the underlying legal issues. DJI alleges the FCC “exceeded its statutory authority, failed to observe statutorily required procedures, and violated the Fifth Amendment,” and also claims that the FCC has used the ruling “as a justification” to restrict DJI’s ability to import not only covered products but even other existing and new products “outside the scope of the ruling.” DJI’s earlier reconsideration petition also described the FCC’s approach as unprecedented, asserting that “for the first time,” the bureau added an “entire category of products” rather than particular products produced by particular entities. Right now drone operators can map their fleets and supply chain exposure by identifying which platforms, payloads, and support items are affected; review contracts, customer commitments, and lead times in case availability tightens (which could include replacement parts); consider contingency procurement and platform diversification where feasible; and prepare clear customer and internal communications so operational teams know what can be bought, serviced, and deployed while the appeal proceeds.

Photo of Kathryn Rattigan Kathryn Rattigan

Kathryn Rattigan is a member of the Business Litigation Group and the Data Privacy+ Cybersecurity Team. She concentrates her practice on privacy and security compliance under both state and federal regulations and advising clients on website and mobile app privacy and security…

Kathryn Rattigan is a member of the Business Litigation Group and the Data Privacy+ Cybersecurity Team. She concentrates her practice on privacy and security compliance under both state and federal regulations and advising clients on website and mobile app privacy and security compliance. Kathryn helps clients review, revise and implement necessary policies and procedures under the Health Insurance Portability and Accountability Act (HIPAA). She also provides clients with the information needed to effectively and efficiently handle potential and confirmed data breaches while providing insight into federal regulations and requirements for notification and an assessment under state breach notification laws. Prior to joining the firm, Kathryn was an associate at Nixon Peabody. She earned her J.D., cum laude, from Roger Williams University School of Law and her B.A., magna cum laude, from Stonehill College. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.