(Yicai) March 23 -- Shares in Arashi Vision tumbled after the Insta360 camera maker, which entered the drone market last year, was hit by a lawsuit by Chinese drone giant DJI Technology over the ownership of six patents.

Arashi Vision [SHA: 688775] closed down 7 percent at CNY181.15 (USD26.23) a share today. The broader Shanghai stock market dropped 3.6 percent.

The patents involved technologies developed by former DJI employees within one year after their resignation, with the inventions closely related to the tasks they performed during their employment, the Shenzhen-based company said in the lawsuit.

Arashi Vision responded that it is conducting an internal review.

Several of DJI's former core research and development employees are allegedly involved, a person familiar with the matter told Yicai today, noting that the court has accepted the case.

Two of the patents related to drone flight control and structural design contain key details, where some inventors were listed as "requesting anonymity" in the domestic patent application submitted by Arashi Vision, but their real names were required to be disclosed in the corresponding international documents, the person noted. A comparison reveals that the inventors are ex-R&D personnel of DJI, the person said.

These former employees were deeply involved in the technical development of key drone projects during their time at DJI, directly accessing and mastering core technologies, including flight control, structural design, and image processing, the person said. The crux of the dispute lies in the possibility that patents involving work done during their time at DJI were applied for again while working at Arashi Vision within one year of switching employers, the person added.

Last December, Antigravity, a drone brand under Arashi Vision and a third party, released the world's first panoramic drone Antigravity A1. Its main selling points include an immersive flight experience and panoramic image transmission.

Sales of Antigravity A1 in China exceeded CNY30 million (USD4.3 million) within 48 hours, Liu Jingkang, founder of Arashi Vision, said in an internal message.

In addition, Arashi Vision and DJI also compete in the handheld camera market, after the latter company released its Osmo 360 last July.

Editor: Martin Kadiev