GoPro sells drone patents to Skydio after $75M loss year

GoPro has sold a substantial portfolio of drone-related patents to Skydio, the largest US-based drone manufacturer. This patent deal represents a calculated step amid recent financial and operational hurdles for both companies.

GoPro, long known for its action cameras and attempted forays into the drone market, has transferred to Skydio 114 US patent assets, including innovations in drone guidance, content capture, and data processing.

For GoPro, this sale appears to be part of a broader attempt to cut costs and re-align its focus amid financial strain. The company posted a substantial $75 million operating loss for 2023, with plans to reduce its workforce by 26% to save expenses. These ongoing issues have impacted GoPro’s stock, which dropped by over 10% recently following news of the layoffs. While GoPro’s portfolio once boasted over 1,000 US patents, the company is now monetizing some of these assets as it pivots to meet financial goals.

Skydio’s purchase may strategically strengthen its intellectual property position in an increasingly competitive drone market. With these new patents, Skydio may secure the freedom to operate without infringing on third-party IP, enhancing its market positioning. The company, which produces drones and software solutions for public safety, defense, and energy clients, has rapidly become a leader in the US drone industry. However, Skydio also faces its own set of operational challenges.

Most recently, Skydio became the target of Chinese sanctions due to the sale of drones to Taiwan. This development has disrupted Skydio’s battery supply, as China has halted the production of batteries critical to Skydio’s drones. CEO Adam Bry acknowledged that Skydio will face battery shortages until new suppliers outside China can come online, which is expected by spring 2025. This sanction complicates Skydio’s manufacturing process and highlights its dependence on China for critical components — a challenge for a company aiming to expand its presence as a US drone alternative amid tensions with Chinese competitors.

With this patent purchase from GoPro, Skydio gains more than intellectual property — it strengthens its ability to innovate and operate independently within a rapidly evolving market. Meanwhile, GoPro’s decision to divest these patents could help the company stabilize financially while it refocuses on its core product lines. The deal signifies an essential step for both companies as they address challenges unique to their sectors but emblematic of the broader dynamics facing US tech companies today.

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