(Yicai) July 3 -- A patent dispute between Chinese drone giant DJI Technology and its competitor Arashi Vision, best known for its Insta360 cameras, is set to go to trial in mainland China next month. Both companies filed lawsuits against each other in the United States last month but withdrew their claims before the end of the month.

DJI filed lawsuits in several Chinese courts weeks ago, accusing Arashi Vision of infringing patents related to its Luna series of handheld gimbal cameras. One of the cases that was accepted by the Shenzhen Intermediate People's Court in southern Guangdong province is scheduled for trial on Aug. 3, a source familiar with the matter told Yicai today.

DJI is seeking a court order requiring Arashi Vision to immediately cease all infringing activities, including the manufacturing and sale of the allegedly infringing products as well as compensation for economic losses and legal expenses incurred in enforcing its rights, the source said.

Meanwhile, Arashi Vision has filed six counterclaims against DJI in multiple courts, including in Shenzhen and Ningbo. These counterclaims involve patents related to panoramic imaging and editing technologies, bullet-time shooting techniques, camera thermal management systems, camera expansion modules and gimbal support technologies.

The dispute stems from both Shenzhen-based companies expanding aggressively into each other’s core business areas. Last July, DJI launched its first panoramic camera, the Osmo 360, while Arashi Vision branched into drone territory last year, linking arms with a third party to develop the drone brand Antigravity which released the world’s first panoramic drone, the Antigravity A1, at the end of the year.

In March, DJI initiated its first patent lawsuit against Arashi Vision, involving six drone-related patents. Then in the middle of June, both companies filed mutual patent infringement lawsuits against each other in the US, but they both withdrew their cases at the end of the month.

The decision to withdraw the US lawsuit was driven by DJI's global business strategy and an effort to optimize the allocation of litigation resources, a source close to the company told Yicai. It does not reflect any change in DJI's stance on protecting its rights.

In the handheld smart camera market, DJI and Arashi Vision are the world’s top two manufacturers by shipment volume. DJI shipped 10.4 million units last year, capturing 62 percent market share, while Arashi Vision delivered 3.4 million units, accounting for 20 percent of the market, according to US market research firm International Data Corporation.

Editors: Dou Shicong, Kim Taylor