New U.S. Bill Targets Patent Rights of Foreign Entities on National Security Lists, Impacting Drone Industry IP

A new legislative proposal in the U.S. Congress, the Prohibiting Adversarial Patents Act of 2026 (PAPA), seeks to extend national security scrutiny into the realm of intellectual property rights by restricting certain foreign entities from obtaining and enforcing patents in the United States. Introduced by Representative Scott Fitzgerald (R-WI) and co-sponsored by members of the House Select Committee on the Chinese Communist Party, the bill targets companies deemed national security concerns, including those on government-maintained lists such as the Treasury Department’s Non-SDN Chinese Military-Industrial Complex Companies List, the Department of Defense’s Chinese Military Companies list, and the Federal Communications Commission’s Covered List.

Under the proposed legislation, "a person may not be issued a United States patent for an invention" if that person is identified on these lists. Furthermore, any U.S. patent already issued to such a person would be rendered unenforceable within the United States. However, the bill explicitly states that it would not revoke ownership or affect the term of any existing patents held by these entities.

The legislation also grants the President authority to issue waivers for up to 180 days at a time under specified circumstances, providing some flexibility in enforcement.

Rep. Fitzgerald emphasized that the bill aims to prevent adversarial entities from leveraging American intellectual property protections to gain economic advantages while posing security risks. This approach aligns with broader U.S. technology policy trends that increasingly focus on securing supply chains, communications infrastructure, and technology sourced from foreign adversaries.

Although the bill does not specifically mention the drone industry, its provisions could have significant repercussions within this sector. The drone market has been closely intertwined with policy discussions on supply chain security and the FCC Covered List, and patent disputes have played a notable role in competition among drone manufacturers.

Historically, the commercial drone industry has witnessed prominent intellectual property conflicts. A key example involves DJI and Autel Robotics. In 2018, Autel filed a complaint with the U.S. International Trade Commission (ITC), alleging that DJI infringed several of its patents related to drone technologies such as rotor locking mechanisms, speed-control systems, and removable battery designs. An ITC administrative law judge later found DJI infringed one of Autel’s patents in 2020. The dispute was ultimately resolved through a settlement agreement announced in 2021.

These cases underscore the critical importance of patent rights in the drone sector, where manufacturers compete on hardware design, flight control systems, batteries, sensors, and other technological innovations.

If enacted, the PAPA legislation would not cancel patents held by covered entities but would render them unenforceable in the U.S., leaving ownership intact. Legal experts anticipate that the interpretation and application of these provisions would require judicial clarification.

The bill arrives amid ongoing debates over the role of foreign-made technology in vital U.S. economic sectors, reflecting heightened concerns about national security and economic leverage through intellectual property rights.

As the drone industry continues to grow and evolve, this legislation could reshape the landscape of patent enforcement and ownership for companies identified as national security risks, potentially influencing competitive dynamics and innovation incentives within the sector.