By Brent Li
A fierce turf war between two Chinese hardware heavyweights has spilled from the marketplace into the courtroom. Da Jiang Innovation, the world’s biggest drone maker more commonly known by the name DJI, has officially filed a lawsuit against Insta360 for patent infringement.
Both companies are undisputed leaders in their respective fields. DJI, a privately held company, controlled more than 90% of the global consumer drone market in 2024, according to an MIT Technology Review report. Data from Frost & Sullivan show that Insta360, which trades on the Shanghai STAR Market under the name Arashi Vision (688775.SS), dominated the 360-degree camera market with a 67% global share in 2023.
Encroaching on each other’s turf
The competitive landscape began to shift dramatically in 2025 as the two hardware giants aggressively pushed into each other’s core markets. Their cutthroat rivalry highlights the brutal reality of the Chinese tech industry, where companies frequently launch direct challenges against market leaders in unfamiliar but highly lucrative sectors.
In July 2025, DJI launched the Osmo 360, a panoramic action camera, cutting deep into Insta360’s primary business. In December that year, Insta360 struck back, releasing Antigravity — a 360-degree consumer camera drone that directly challenged DJI’s aerial dominance.
Consumer reaction to Antigravity was positive, largely because buyers had not anticipated that combining a drone with a 360-degree camera could result in such an entertaining and versatile product. But DJI isn’t sitting idly by. It is responding imminently with its own 360-degree drone, the Avata 360, a direct rival to Insta360’s Antigravity.
The conflict has bled into marketing and manufacturing. DJI initiated a large-scale price cut last October, according to 21st Century Business Herald, which Insta360 countered by offering 100-yuan ($14) vouchers to consumers who had recently purchased DJI products. Insta360 has said it faced sudden supply chain disruptions when some of its drone part suppliers abruptly terminated their partnerships due to exclusive agreements enforced by DJI.
Patent disputes and hidden names
The market rivalry has now evolved into a high-stakes legal battle. DJI recently filed a lawsuit in the Shenzhen Intermediate People’s Court, claiming ownership over six patents used by Insta360. News of the lawsuit led to a drop of nearly 7% in Insta360’s share price.
The disputed patents focus on drone flight control — the internal software that keeps a device stable in the air — as well as structural design and image processing. DJI alleges that former core research employees created these technologies within a year of leaving DJI, making the patents DJI’s rightful property under Chinese employment law.
DJI also claims that Insta360 intentionally hid the names of the former DJI employees on domestic patent applications, only revealing their true identities in international filings where disclosure is mandatory.
Insta360’s founder, Liu Jingkang, denied the allegations on social media, saying evidence shows the ideas were generated entirely within Insta360. Furthermore, the company said hiding inventors’ names domestically is a standard industry practice to prevent corporate headhunters from poaching valuable technical staff.
While talent mobility is frequent among Chinese tech firms, patent lawsuits resulting from such employee transfers are remarkably rare between industry giants. The last major conflict dates back to 2023 between Huawei and Xiaomi, which ultimately ended in a cross-licensing agreement. Adding intrigue to the current lawsuit is the venue: Shenzhen courts are famous for leaning toward protecting local enterprises. With both the plaintiff and the defendant based in Shenzhen, the legal outcome remains highly unpredictable.
Navigating external pressures
This fierce domestic battle is unfolding as both companies face significant headwinds in international markets.
The U.S. Federal Communications Commission effectively banned imports of DJI’s new models into the country in December 2025 over national security concerns, despite the company’s public denial that it shares user data with the Chinese government.
Insta360 is also dealing with heavy legal hurdles in North America, having recently fought a major patent infringement dispute with the American camera maker GoPro. However, the U.S. International Trade Commission recently ruled that Insta360 did not infringe on GoPro’s utility patents, delivering a much-needed win for the Chinese company — a case that Liu noted cost Insta360 more than $10 million in legal fees.
Addressing the DJI lawsuit, Insta360’s founder noted that the company understands the mentality of a corporate giant losing its market share, suggesting that the legal action is merely a byproduct of its competitor’s anxiety.
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