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DJI China misappropriated DJI North America's biz in total

Discussion in 'Phantom 2 Vision Discussion' started by iDrone, Jan 29, 2014.

  1. iDrone

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    DJI North America Obtains Injunction Against Hong Kong Dajiang Innovation Technology Co., Ltd. a/k/a DJI Innovations

    "After North American sales sky-rocketed, DJI China embarked on a course of conduct designed to “misappropriate DJI North America’s business in total,” the Judge determined."

    http://www.fortmilltimes.com/2014/01/28/3248657/dji-north-america-obtains-injunction.html

    The judge's Injunction Order:
    https://www.dropbox.com/s/uu1aims793yj97r/DJI - Signed Temporary Injunction with Exhibit.pdf

    Not pretty.
    iDrone :!:
     
  2. OI Photography

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    Re: DJI China misappropriated DJI North America's biz in tot

    Wow.

    "The Court considered evidence that DJI China misappropriated all the revenue in DJI North America’s revenue account, sought to liquidate the assets of DJI North America on New Year’s Eve, and forced DJI North America to fire twenty employees immediately before Christmas without severance."

    and

    "The Judge ruled that an Injunction was necessary because DJI China was placing DJI North America’s assets in China, out of the reach of the United States Court. The Judge found that DJI China not only placed money from DJI North America’s revenue account into a foreign bank account, but it also directed DJI North America’s customers to make payments directly to a Chinese bank account."
     
  3. LandYachtMedia

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    Re: DJI China misappropriated DJI North America's biz in tot

    And that is exactly why I commented in the other tread that until the details were exposed we shouldn't pass judgement on their actions. From what I read in that story it sounds like they had good reason to sue.
     
  4. Waterborne

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    Re: DJI China misappropriated DJI North America's biz in tot

    Ugly. I will not return as a DJI China customer.
     
  5. MedX172

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    Re: DJI China misappropriated DJI North America's biz in tot

    Wow, that's absolutely horrible. DJI China will be hard pressed to smooth this one over.

    It seems from some of the comments that I've read that Collin Guinn was polarizing. Personally, his friendly persona and outward enthusiasm are what sold me on trying quads as a hobby.

    You can't (allegedly) and surreptitiously seize the bank accounts of a company at the stroke of midnight and fire the person who for all intent and purpose was "the face of DJI innovations" to the public and expect to sweep it under the rug.

    It's pretty unethical and sleazy. If found guilty, people will question DJI's corporate integrity. Whose going to want partner with a company that pulls the rug out from under entities in other countries once the operation shows good ROI?

    I'd like to see the former North American DJI group find another backer and watch them innovate and market a product that would give DJI cause to be alarmed.
     
  6. MedX172

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  7. LeoS

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    Re: DJI China misappropriated DJI North America's biz in tot

    So you're not buying anything with a 'DJI' brand at all anymore? =P

    This is a tricky situation. I'm sure neither party is completely blameless in this debacle....
     
  8. MedX172

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    Re: DJI China misappropriated DJI North America's biz in tot

    Personally, since I already made the investment, I'll see the PV2 through it's lifespan. When the time comes to consider a new quad, however, I'm less likely to be struck with "brand loyalty syndrome".
     
  9. iDrone

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    Re: DJI China misappropriated DJI North America's biz in tot

    I've put the link to the injunction order in the first post if you want to read it. Basically DJI Texas setup the exclusives with over 30 dealers and the judge has ordered DJI China to cease & desist any further direct sales to them or taking payments from them, plus they're banned from soliciting sales thru demos & shows as well.

    Guess it ain't a good idea to mess with a judge from Texas. :D
    iDrone
     
  10. Pull_Up

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    Re: DJI China misappropriated DJI North America's biz in tot

    When is the next hearing? Presumably DJI global get to put their side of the story at some point... It will be interesting to see what counter-claims, it any, they put in.
     
  11. nmacpherson

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    Re: DJI China misappropriated DJI North America's biz in tot

    Will be interesting, but it can get nasty.
     
  12. Shrimpfarmer

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    Re: DJI China misappropriated DJI North America's biz in tot

    The whole thing leaves a bad taste in the mouth. My new P2 arrives today but seeing how DJI treat people (granted we have only seen one side of the story) its taken the edge off it for me.

    Brand loyalty should only be given to a company that does right by its customers and right by the people who make it work. I have to say I would not hesitate to jump ship if there was something better on offer.
     
  13. iDrone

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    Re: DJI China misappropriated DJI North America's biz in tot

    Hi Pull_Up, the judge has heard DJI China's side, the case goes to trial August 11th and I imagine it'll be very unlikely the injunction will be lifted before then. Not even sure if settlement is an option at this point... Is this a civil case or could it become a criminal case (intentionally trying to misappropriate money) :?: Any P2V'ers from the bar care to comment?

    iDrone :eek:
     
  14. Nvr2fst

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    Re: DJI China misappropriated DJI North America's biz in tot

    I feel even more secure in my decision to bail on the Phantom and DJI.
    I already have a hard time sending all of my money to China. Although it is absolutely impossible to avoid nowadays.
    But if I have no choice, I will not send my money to a company like this. Before this all came to light, I vowed to not buy anything else from DJI for the whole string of issues and the total lack of support after the fact. After Colin was gone, I was left with an insecure feeling with this company.
    Granted I didn't have all of these issues but I am not one to wait for it to happen. The crappy "Extremely High Quality" camera pushed me over the edge.
    This company just gives a sense of insecurity and a lack of trust.

    For some reason I glance over this forum still. If there is a train wreck, you just have to watch I guess.
     
  15. iResq

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    Re: DJI China misappropriated DJI North America's biz in tot

    I wonder what the Colin Haters Fan club will think of this?
     
  16. gunslinger

    gunslinger Moderator
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    Re: DJI China misappropriated DJI North America's biz in tot

    Yeah... I'm guilty of jumping the gun on Colin's agenda regarding the injunction. This is really nasty.

    -slinger
     
  17. LeoS

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    Re: DJI China misappropriated DJI North America's biz in tot

    All we're gonna hear from this point on is how rotten each sides are, because it has hit the fan...
    They're just gonna be slinging muds against each other.
     
  18. rmklaw

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    Re: DJI China misappropriated DJI North America's biz in tot

    This will only be a civil case. I agree that the likelihood of removing the injunction is very low, unless case gets removed to Federal District Court. I do think that this is the type of case where settlement is likely. I don't think it will ever get to trial. However, there will be lots of discovery from both sides before settlement talks.
     
  19. Pull_Up

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    Re: DJI China misappropriated DJI North America's biz in tot

    I would tend to agree that a settlement is most likely. After all it appears Colin Guinn was quite happy to turn his interest in DJI NA into cash/stock equivalent before it all got a bit allegedly underhand, so I suspect there's a figure in his and his lawyer's mind that would bring a fairly swift end to the matter... assuming DJI Global want a swift ending too!
     
  20. hancop

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    Re: DJI China misappropriated DJI North America's biz in tot

    Can't wait for another company to jump on the bandwagon and make quality units similar to the phantom and have excellent customer support and value. Then we can all dump DJI in a big hurry :)