Patents You Own but Can't Enforce: What PAPA Means for the Drone Industry
A House bill would strip enforceability from U.S. patents held by entities on three national security lists, with the drone sector as the first concrete test.
A House bill would strip enforceability from U.S. patents held by entities on three national security lists, with the drone sector as the first concrete test.
The most interesting thing about the Prohibiting Adversarial Patents Act isn't the companies it targets. It's the legal mechanism it invented.
Introduced by Rep. Scott Fitzgerald (R-WI) with co-sponsors drawn from the House Select Committee on the Chinese Communist Party, the Prohibiting Adversarial Patents Act of 2026 (PAPA) does something no recent patent bill has tried: it strips enforceability from U.S. patents held by certain foreign entities while leaving the patents themselves technically owned. Ownership is preserved. The patent term is preserved. The patent itself stays on the register. The owner just cannot sue to stop an infringer, license the technology, or assert the patent in court.
The mechanism runs through three U.S. government lists. The bill text distributed by its sponsors bars the issuance of new U.S. patents to entities named on Treasury's Non-SDN Chinese Military-Industrial Complex Companies List, the Department of Defense's list of Chinese Military Companies, or the Federal Communications Commission's Covered List. For patents already in force at the time of listing, the bill renders them unenforceable. The President can grant waivers in successive 180-day periods under specified circumstances, an escape hatch that creates a renewable uncertainty cycle for any counterparty doing business with a listed drone company.
The drone sector is the first concrete arena where this new legal category meets commercial reality. PAPA does not name drones anywhere in its text. The link runs through the FCC's Covered List, which already governs drone and drone-component equipment authorization, and through a decade of drone-industry patent fights that have set the template for what an unenforceable patent would look like in practice. The FCC's FAQ on the Covered List for unmanned aircraft systems and critical components makes the regulatory bridge explicit: the same authority that can block a Chinese-made drone from U.S. airspace could, under PAPA, neutralize that manufacturer's U.S. patent portfolio.
The closest precedent is the Autel-DJI fight. In 2018, Autel Robotics filed an International Trade Commission complaint against DJI alleging that DJI's drones infringed Autel patents on rotor locking mechanisms, speed-control systems, and removable battery designs. A 2020 ITC administrative law judge issued an initial determination finding that DJI had infringed one Autel patent. The broader dispute settled in 2021, before the full commission could finalize a remedy. That litigation mapped the terrain where U.S. patent rights and Chinese drone manufacturers meet. PAPA would redraw that terrain by making the patent itself inert, regardless of infringement findings.
For U.S. drone companies, the immediate question is defensive. A patent portfolio designed to deter copycats or to extract licensing revenue from a Chinese counterparty becomes worthless the moment the counterparty lands on any of the three lists. For investors and acquirers, the question is diligence. Any drone company whose product roadmap depends on licensing patents from a potentially listable entity inherits a 180-day waiver clock that the executive branch can reset at will. For U.S. innovators, the question is retaliation. If PAPA-style rules spread to allied patent systems, the U.S. drone sector's own patent holders could face reciprocal treatment in foreign jurisdictions.
PAPA sits inside a broader policy arc that has moved quickly. The FCC finalized drone-specific Covered List exemptions in January 2026, creating a carve-out for UAS and critical components on the Blue UAS Cleared List and for domestic-end-product components under Buy American rules. The FCC received its first conditional approvals for specific UAS exemptions in March 2026. The GUARD Act, also introduced in June 2026, extends the FCC Covered List framework to robotics. DJI submitted to an independent security assessment in May 2026. PAPA is the newest move in a sequence, and it is the one that touches intellectual property directly, where the previous moves touched market access and equipment authorization.
The legal and commercial questions are real. Ownership without enforceability is an awkward doctrinal fit. U.S. patent law has long treated the right to exclude as the core of the patent grant; PAPA leaves the title intact but removes the only remedy that matters. Due-process concerns attach to the listings themselves, which are administered by Treasury, DoD, and the FCC through administrative processes that were not designed to calibrate patent consequences. The 180-day waiver gives the executive branch a real-time dial, but it also makes the enforceability of any given patent a function of Washington politics rather than judicial fact-finding.
What to watch next: committee referral in the House, any Senate companion bill, and the first drone-sector licensing or M&A deal that prices PAPA risk into its terms. The bill is introduced, not law. But the legal category it creates, a patent you own but cannot enforce, is already a usable tool for patent counsel advising drone clients on defensive portfolios and cross-border licensing.