1. The article details an escalating rivalry between two leading Chinese smart-imaging companies, Shenzhen-based DJI and Insta360 (operated by Arashi Vision Inc. (688775.SH)) [para. 1][para. 2]. The competition has moved beyond product launches to a series of patent lawsuits filed in China, after both companies dropped similar cases in the United States [para. 2]. This rare public clash between two internationally successful Chinese tech firms highlights broader challenges in the consumer-tech sector regarding aggressive competition, intellectual property protection, and avoiding anticompetitive practices [para. 3].
2. Initially, DJI and Insta360 were seen as complementary, with DJI dominating drones and gimbal cameras while Insta360 focused on panoramic and action cameras [para. 4]. However, Insta360's expansion into DJI's core markets—including handheld gimbals and consumer drones—has led to direct confrontation [para. 4]. The latest legal battle began after Insta360 launched its Luna series gimbal camera in June, entering a market where DJI's Pocket series is the benchmark [para. 5]. DJI then filed patent infringement lawsuits against Insta360's Luna products in multiple Chinese courts, with a case in Shenzhen scheduled for August 3 [para. 6]. In response, Insta360 filed six patent lawsuits against DJI on July 3, alleging infringement of patents covering panoramic imaging, editing, "bullet time" filming, gimbal structures, camera cooling, and expansion accessories [para. 7]. The legal fight was initially expected in the U.S., but after domestic authorities intervened, both sides withdrew their Texas cases and moved the dispute back to China [para. 8]. The two companies had also clashed in March over a patent ownership dispute [para. 9].
3. The patent battle is part of a broader commercial rivalry [para. 10]. After listing on Shanghai's STAR Market in June 2025, Insta360 accelerated expansion [para. 10]. On July 28, it launched its first consumer drone brand, Antigravity, challenging DJI's stronghold [para. 11]. DJI responded on September 23 with its first thumb-sized camera, the Osmo Nano, and on March 26 of the following year with its first 360-degree drone, the Avata 360, intercepting Insta360's Antigravity A1 panoramic drone (released December 4) [para. 11][para. 12][para. 13]. The Avata 360 started at 2,788 yuan, undercutting the Antigravity A1's 6,799 yuan starting price [para. 14].
4. Insta360's rise is driven by founder Liu Jingkang, a 34-year-old entrepreneur known for an unconventional management style and willingness to challenge industry giants [para. 15]. Founded in 2015, the company focused on simplifying panoramic video capture [para. 16]. Its first product, the Insta360 Nano, attached to smartphones [para. 17]. After shifting focus to extreme sports, by 2018 Insta360 became the world's largest panoramic camera brand by shipments [para. 18]. Liu is outspoken on social media, often discussing competitors like DJI [para. 19]. In 2025, he accused DJI of achieving a monopoly-level position and suggested that DJI pressured suppliers into exclusive arrangements to limit rivals [para. 20][para. 21]. His aggressive style attracted controversy in August 2025 when videos circulated of him throwing cash from an office building; the company later apologized [para. 22].
5. In contrast, DJI founder Wang Tao has mostly avoided public attention [para. 23]. Founded in 2006, DJI became the world's dominant consumer drone maker with its Phantom series in 2013, offering easy-to-use aircraft for under $700 [para. 24]. The company expanded into professional imaging, agriculture drones, and robotics [para. 25]. Wang, known for uncompromising engineering standards, gave his first public interview in nearly a decade in April to discuss the rivalry with Insta360 [para. 26]. He compared Liu to "the Red Boy" from Chinese mythology and criticized Insta360's media-driven approach, expressing hope for a healthier competitive environment [para. 27][para. 28].
6. The clash comes at a difficult time for DJI, facing pressure from both domestic regulation and overseas restrictions [para. 29]. China has tightened drone controls with registration and approval requirements [para. 30]. In December 2025, the U.S. FCC placed DJI products on its "Covered List," effectively banning new products from U.S. sale [para. 31]. In February, DJI petitioned a U.S. appeals court against the decision, with no updates yet [para. 32]. Sources told Caixin that DJI's Pocket 4 and Pocket 4P cannot currently be sold in the U.S. due to these restrictions [para. 33][para. 34]. InstaFace faces its own pressures: revenue rose 74.8% to 9.74 billion yuan in 2025, but net profit fell 6.6% to 929 million yuan due to rising costs [para. 35][para. 36]. Research expenses surged over 95% year-on-year [para. 37]. The patent dispute adds uncertainty, as industry insiders note prolonged lawsuits can drain resources over three to five years [para. 38][para. 39].
AI generated, for reference only
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