The intensifying rivalry between China’s premier imaging giants has officially moved from the retail shelves to the courtroom. Shenzhen-based DJI, the world’s undisputed leader in consumer drones, has filed a lawsuit against Insta360 (Arashi Vision) in the Shenzhen Intermediate People's Court. The dispute centers on the ownership of six key patents, marking the first time DJI has initiated such a domestic IP claim against a major homegrown competitor.
At the heart of the litigation is the 'one-year rule' of Chinese patent law, which classifies inventions made by employees within a year of their departure as 'service-related inventions' if they pertain to their previous duties. DJI alleges that several former core R&D personnel joined Insta360 and filed patents for flight control and image processing technologies that legally belong to DJI. Following news of the lawsuit, Insta360’s stock price plummeted nearly 7% on the Shanghai STAR Market.
Insta360 founder Liu Jingkang has struck back on social media, defending the innovations as independent and legitimate. Addressing allegations that his company 'hid' inventor names in domestic filings while revealing them in international PCT applications, Liu argued this was a strategic move to protect his engineers from aggressive headhunting. He maintains that the technologies in question were born from Insta360’s own internal ideation and R&D processes.
The timing of this legal strike is far from coincidental, appearing as the final stage of a multi-front commercial war. In 2025, DJI aggressively entered the 360-degree camera market with its Osmo 360, reportedly slashing Insta360’s global market share from over 90% to roughly 49% in a single quarter. In retaliation, Insta360 launched its first FPV drone, the Shadow Wing A1, directly challenging DJI's core dominance just as DJI prepares to release its own competitive hardware later this month.
Legal experts suggest that the outcome of this case could determine the future of Insta360’s drone ambitions. If DJI prevails, the court could grant it ownership of the contested patents, effectively barring Insta360 from producing or selling products that utilize those technologies without a license. With a typical trial duration of one to three years, this legal 'Sword of Damocles' may hinder Insta360’s ability to secure further supply chain partnerships or investor confidence in its newest product categories.