DJI has two active lawsuits against the U.S. government. The first, filed in February 2026 in the Ninth Circuit, challenges the Federal Communications Commission’s decision to place foreign-made drones on its Covered List, a listing that blocks new DJI models from entering the American market. The second, filed in October 2024 and now on appeal in the D.C. Circuit, challenges the Department of Defense’s designation of DJI as a “Chinese military company.” Both DJI lawsuits remained unresolved as of mid-2026, and a separate petition for reconsideration at the FCC and a delisting request at the Pentagon are also pending.
The FCC Case: Challenging the Covered List Designation
On February 20, 2026, DJI filed a petition for review in the U.S. Court of Appeals for the Ninth Circuit asking the court to overturn the FCC’s Covered List action.1Commercial UAV News. DJI Lawsuit FCC Covered List The company is represented by Cooley LLP, with former U.S. Solicitor General Elizabeth Prelogar on the legal team.2Ars Technica. DJI Petition for Review, Case No. 26-1029 DJI asks the court to “hold unlawful, vacate, enjoin, and set aside” the FCC’s ruling.
The petition rests on three core arguments.
Exceeded statutory authority. DJI contends the FCC went further than the Secure and Trusted Communications Networks Act of 2019 and Section 1709 of the FY2025 National Defense Authorization Act actually authorize, effectively imposing a market ban without the factual foundation the statute requires.3Ars Technica. DJI Sues the FCC for Carelessly Restricting Its Drones
Procedural failures. The company argues it was never given the chance to review or respond to the security concerns underlying the listing. DJI says it made “repeated efforts to engage” with the government but was shut out of the process.4Bloomberg Law. China’s DJI Takes Fight With FCC Over Drone Ban to Appeals Court
Fifth Amendment violations. DJI raises two distinct due process claims. It argues the FCC denied procedural due process by failing to provide notice of the listing, identify the agencies behind the security assessment, or allow DJI to rebut non-classified allegations. It also challenges Section 1709 of the NDAA as effectively punitive, arguing the statute forces a Covered List designation when a review deadline passes regardless of whether any security risk was actually found.5Science and Technology Daily. DJI Challenges FCC Covered List Inclusion
The FCC’s Motion to Dismiss
The government moved quickly to knock the case out on jurisdictional grounds. On March 6, 2026, the FCC filed a motion to dismiss the petition as “incurably premature,” arguing the court lacks jurisdiction because the challenged action is not yet final. The FCC’s theory has two prongs. First, DJI filed its own petition for reconsideration at the agency on January 21, 2026, and under federal law a pending reconsideration request renders the underlying order non-final. Second, the December 2025 Public Notice was issued by the FCC’s Public Safety and Homeland Security Bureau, a staff-level body, and not by the full Commission, which the FCC says means DJI has not exhausted the administrative steps required before judicial review.6FCC. FCC Motion to Dismiss, Case No. 26-1029
DJI filed its response on April 15, 2026, and the FCC replied on May 4. As of late May 2026, the motion is fully briefed and awaiting a ruling.7CourtListener. SZ DJI Technology Co. v. FCC, Case No. 26-1029
The Parallel FCC Reconsideration Petition
While the Ninth Circuit case is pending, DJI is fighting on a second front inside the FCC itself. The January 21, 2026 petition for reconsideration raises the same core points that appear in the court petition: that the FCC exceeded its authority, ignored required procedures, and violated the Fifth Amendment.8DroneXL. Pentagon DoD Classified Intelligence DJI FCC Covered List Opposition
Opposition filings came in from the Department of Defense, which submitted a memorandum stating that its national security determination relied on both classified and unclassified intelligence, including a classified annex sent to Congress on April 3, 2026, and from the Foundation for Defense of Democracies.8DroneXL. Pentagon DoD Classified Intelligence DJI FCC Covered List Opposition DJI’s reply was due May 11, 2026. The FCC has not yet ruled.9FCC. Office of Engineering and Technology Public Notice, ET Docket No. 26-22
The DoD Case: Fighting the “Chinese Military Company” Label
DJI’s fight with the Pentagon predates the FCC dispute. In October 2024, DJI sued the Department of Defense in the U.S. District Court for the District of Columbia, challenging its 2022 designation as a “Chinese military company” under Section 1260H of the FY2021 NDAA. The designation bars DJI from certain government contracts, grants, and programs, and, according to the company, has caused significant financial and reputational harm.10TechCrunch. DJI Loses Lawsuit Over Classification as Chinese Military Company
The company was initially represented by Paul, Weiss, Rifkind, Wharton & Garrison, with former Attorney General Loretta Lynch leading the team.11Newsweek. Chinese Drone Firm Suing Pentagon Represented by Former Obama AG Representation later shifted to Quinn Emanuel Urquhart & Sullivan.12CourtListener. SZ DJI Technology Co. v. US Department of Defense, Parties
The District Court Ruling
On September 26, 2025, Judge Paul Friedman ruled against DJI. The court upheld the Pentagon’s designation, though on narrower grounds than the government had argued. Judge Friedman rejected several of the DoD’s rationales, including claims of ownership or control by the Chinese Communist Party, but found two factors sufficient: DJI’s recognition as a “National Enterprise Technology Center” by a Chinese government agency, and the “substantial dual-use applications” of DJI technology.13DJI. DJI Appeals US Court Decision The judge acknowledged that the designation “stigmatizes” DJI but concluded that the Pentagon’s reasoning, while “imperfect in parts,” met the legal standard.14Iowa Capital Dispatch. Drone Manufacturer Appeals Ruling Listing It as a Chinese Military Company
The D.C. Circuit Appeal
DJI appealed to the D.C. Circuit in October 2025.13DJI. DJI Appeals US Court Decision Oral arguments took place on February 6, 2026, before a panel of Chief Judge Srinivasan and Judges Wilkins and Garcia.15CourtListener. SZ DJI Technology Co. v. DoD, Case No. 25-5367
During the hearing, DJI’s counsel argued that the administrative record lacks “substantial evidence” to support the listing, particularly on the statutory requirement that the company “knowingly” received assistance from the Chinese military planning apparatus. DJI’s lawyers challenged the weight placed on the National Enterprise Technology Center recognition, contending the record contains no evidence that the designation currently provides DJI with tax breaks or financial subsidies. They also pushed back against the court relying on classified portions of the record, noting that the entire determination under the “Chinese defense industrial base” heading had been redacted.16CourtListener. SZ DJI Technology Co. v. DOD, Oral Argument Audio
As of mid-2026, the D.C. Circuit has not issued a decision. A separate delisting petition DJI filed with the DoD in April 2025 has also gone unanswered.16CourtListener. SZ DJI Technology Co. v. DOD, Oral Argument Audio
How the FCC Restriction Works
Understanding what DJI is fighting for helps make sense of the stakes. On December 22, 2025, the FCC’s Public Safety and Homeland Security Bureau added all foreign-produced unmanned aircraft systems and their critical components to the agency’s Covered List, the roster of equipment deemed to pose unacceptable national security risks. The action was taken under the Secure and Trusted Communications Networks Act and Section 1709 of the FY2025 NDAA, following a national security determination issued the previous day by an executive branch interagency body.17FCC. Public Safety and Homeland Security Bureau Announces Addition of UAS to FCC Covered List
Placement on the list means affected equipment cannot receive FCC equipment authorization, the regulatory approval required before any wireless device can be legally imported, marketed, or sold in the United States. The practical result: no new DJI drone models can enter the U.S. market.18FCC. FCC Announces Addition of Foreign-Made Drones to Covered List The listing applies by place of production rather than naming DJI, but DJI accounts for more than half of all U.S. commercial drone sales and is by far the company most affected.19Reuters. US Adds DJI, Other Foreign Drones to National Security List
The listing does not ground existing drones. Any DJI model that received FCC authorization before the December 2025 cutoff remains legal to own, fly, and sell from existing inventory.18FCC. FCC Announces Addition of Foreign-Made Drones to Covered List Over time, though, the restriction cuts off the supply chain for new hardware and raises questions about the long-term availability of replacement parts, firmware updates, and manufacturer support.20UAV Coach. DJI Ban
What the Government Says About DJI
The government’s case against DJI is built from several strands. A 2017 Department of Homeland Security intelligence bulletin stated DJI was “likely providing sensitive U.S. infrastructure and law enforcement data to the Chinese government,” and officials have pointed to China’s 2017 National Intelligence Law, which can compel private companies to hand data to Beijing on request. The Commerce Department added DJI to its Entity List in December 2020, citing the company’s alleged role in surveillance of Uyghur populations in Xinjiang.21FCC. FCC Commissioner Statement on DJI Judge Friedman, in the September 2025 ruling, noted that modified DJI drones have been used extensively in the Russia-Ukraine conflict, evidence he said pointed to “substantial theoretical and actual military application.”10TechCrunch. DJI Loses Lawsuit Over Classification as Chinese Military Company
DJI has consistently denied the allegations. The company maintains it has no ties to the Chinese military and does not manufacture military products, and points to independent cybersecurity audits, its 2022 decision to halt sales to both Russia and Ukraine, and geofencing technology that restricts drone flights near sensitive sites.11Newsweek. Chinese Drone Firm Suing Pentagon Represented by Former Obama AG As of mid-2026, no concrete public evidence has been released confirming that DJI drones were used for unauthorized data collection or espionage.20UAV Coach. DJI Ban
What Happens Next
Four proceedings will determine whether DJI keeps a foothold in the U.S. market. The Ninth Circuit has to rule on the FCC’s motion to dismiss before it can reach the merits of the Covered List challenge. The FCC has to act on DJI’s reconsideration petition. The D.C. Circuit has to decide the appeal of the “Chinese military company” designation. And the Pentagon has an unanswered delisting petition sitting in front of it since April 2025.16CourtListener. SZ DJI Technology Co. v. DOD, Oral Argument Audio
The outcomes will decide whether DJI can continue selling new drone models in the United States or whether the world’s dominant drone maker is permanently locked out of its largest Western market. For current owners, the immediate answer has not changed: drones already authorized by the FCC remain legal to fly and to sell, and the litigation now under way is about the future of the product line, not the fleet already in the air.