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DJI Bypasses U.S. Ban with Shell Companies: Risks for Consumers

DJI's shell companies may seem like a way to keep its drones accessible, but consumers should be aware of the potential pitfalls and legal uncertainties.

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DJI Bypasses U.S. Ban with Shell Companies: Risks for Consumers

DJI, the world's leading drone manufacturer, is facing a U.S. ban in December 2024. In response, the company has been creating shell companies to bypass export controls and FCC rules. One such company, Fikaxo, has been using tactics like rebranding and routing operations through subsidiaries to hide its connection to DJI.

DJI's shell companies often share close ties with the original hardware or firmware, suggesting an attempt to mask the company's involvement. Buying a drone from these shell companies may come with risks, including limited support, uncertain insurance coverage, inconsistent quality control, and potential legal and compliance issues.

Anzu Robotics, for instance, sells a drone called the Raptor based on the DJI Mavic 3 Enterprise through a licensing agreement. It differentiates itself through supply chain differences and independent software development. However, some U.S. lawmakers are skeptical about Anzu's approach, questioning whether it's a legitimate business arrangement or a workaround to keep DJI's technology accessible.

Other DJI shell companies that have surfaced include Cogito Tech Company, WaveGo Tech LLC, SZ Knowact Robot Technology Co. Ltd, Skyhigh Tech LLC, and Jovistar Inc. These companies are believed to be created increasingly in the U.S. in 2025 as a response to the impending U.S. ban against DJI, serving as alternative business channels for DJI to circumvent restrictions.

As the deadline for the DJI ban approaches, the company continues to create shell companies to skirt export controls and FCC rules. While these companies may offer drones with similar technology to DJI's, consumers should be aware of the potential risks and uncertainties involved. U.S. lawmakers remain vigilant, questioning the legitimacy of these arrangements.

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