DJI Initiates Patent Litigation Against Insta360 Over Osmo Pocket Design as Insta360 Countersues

SHENZHEN — On June 10, the same day Insta360’s Luna Ultra camera became available to U.S. consumers, DJI initiated two patent infringement lawsuits against Arashi Vision Inc., the Chinese company behind the Insta360 brand. The suits were filed in the Eastern District of Texas, a jurisdiction known for its plaintiff-friendly patent litigation environment.

DJI’s complaints assert six patents—two design patents and four utility patents—alleging that Insta360’s Luna Ultra and Luna Pro cameras replicate the architecture DJI developed over nearly a decade for its Osmo Pocket handheld gimbal cameras. The design patents cover distinctive physical features such as the elongated handheld body, the neck connecting the body to the gimbal arm, the rotatable display and bezel, the lower control section with scroll wheel and record button, a side-mounted accessory slot, and the base port. DJI contends that the Luna line’s resemblance to the Osmo Pocket 3 is deliberate, citing Insta360’s own promotional materials at the 2026 NAB Show that positioned the Luna as a direct competitor.

The utility patent claims target functional innovations, including a single-control gimbal mode-switching mechanism, integrated subject tracking with real-time display, a gimbal control method driven by the device’s image of the target, and a self-contained system for subject tracking displayed on the gimbal screen. DJI seeks a permanent injunction barring the Luna cameras from the U.S. market, disgorgement of profits, damages at least equal to a reasonable royalty, and enhanced penalties for alleged willful infringement.

Insta360’s founder, JK Liu, responded swiftly, emphasizing the company’s commitment to independent research and development that began in 2020 and was influenced by earlier Insta360 products such as the ONE R and Flow series gimbals. Liu characterized DJI’s simultaneous lawsuit filing and Luna Ultra launch as a sign of commercial apprehension rather than a legitimate legal claim. The Luna Ultra achieved the top sales position in Amazon’s camcorder category within its first 24 hours on sale.

Within 24 hours of DJI’s filings, Insta360 filed two countersuits alleging that DJI infringes five of its utility patents. These patents cover technologies related to gimbal stabilization, directional control, smooth camera stabilization, telemetry overlay, and panoramic video stabilization. Insta360 claims these technologies appear in DJI’s Osmo Pocket series, Ronin and RS professional gimbals, Osmo Mobile line, and Osmo 360 products. The countersuits aim to broaden the litigation scope, increase costs for DJI, and signal that any settlement would require mutual concessions.

DJI indicated in its filings that it had monitored the Luna line since the NAB Show earlier in 2026 and had prepared legal action timed to coincide with the Luna Ultra’s U.S. launch. The company argued that Insta360’s detailed analyses of both companies’ patent portfolios and products demonstrate that any infringement was conducted knowingly.

Complicating the dispute is the presence of a third competitor entering the U.S. market simultaneously. Delaware-registered startup Xtra Technology is launching the Muse 2 Pro, a pocket gimbal camera with specifications closely mirroring DJI’s Osmo Pocket 4P, including a 1-inch sensor, ActiveTrack 7.0 subject tracking, 107 GB internal storage, 10-bit D-Log color recording, 4K slow-motion at up to 240 fps, and a three-axis gimbal layout. Xtra holds independent FCC approvals and corporate registration, allowing it to circumvent the FCC’s Covered List designation that currently restricts DJI’s new hardware sales in the U.S.

Security researcher Konrad Iturbe has publicly documented a network of at least eight suspected DJI-linked front companies distributing rebranded hardware in the American market. Analysis of Xtra’s companion app revealed thousands of references to DJI’s LightCut video editing software, and FCC teardown filings of the original Xtra Muse showed internal components identical to those in the DJI Osmo Pocket 3. The Muse 2 Pro has yet to undergo similar independent analysis, and Xtra has not publicly addressed these comparisons.

DJI has also accelerated price reductions on older products in response to FCC restrictions, a strategy analysts interpret as an effort to clear inventory amid unresolved regulatory challenges. The 2025 National Defense Authorization Act mandated a national security audit of DJI by December 23, 2025; however, no U.S. agency completed the review by the deadline, effectively barring DJI’s new hardware from the U.S. market through administrative inaction rather than formal findings.

Both DJI’s lawsuits and Insta360’s countersuits were filed in the Marshall Division of the Eastern District of Texas, a venue with a reputation for favoring patent holders and expediting trials. Insta360 chose not to contest venue, matching DJI’s tactical approach.

This legal confrontation is not the first between the two companies. In March 2026, DJI filed a separate patent infringement suit against Insta360 related to drone-based image processing technology, which remains pending. The ongoing disputes suggest DJI is leveraging its patent portfolio aggressively against Insta360, the only major Chinese camera company able to operate freely in the U.S. market while DJI faces regulatory barriers.

The outcome of these cases remains uncertain. Insta360’s countersuits introduce significant legal risks for DJI and may hinder efforts to secure a swift injunction. The pocketable gimbal camera market, once dominated solely by DJI, now features multiple competitors engaged in a full-scale patent war amid a complex regulatory environment. The federal courts’ decisions will likely shape the competitive landscape and product availability in this category for years to come, though neither party’s legal representatives are willing to predict the final resolution.