GoPro sells 114 patents to Skydio Inc as it copes with massive losses

In a surprise move, GoPro has sold over 100 of its patents to drone company Skydio. What does this mean for GoPro going forward?

What does a drone company that makes autonomous drones for the US military got to do with GoPro? Well, as of this moment in time, 114 patents. As part of a 'recalibration' of the company, GoPro has sold 114 of its patents to Skydio Inc for an undisclosed sum.

GoPro has been undergoing some restructuring, with losses of $75m being recorded in 2023, resulting in the decision to lay off 15% of its staff in the last quarter of 2024. Revenue for the second quarter of 2024 was down 22.7% compared with the previous year along with an increase of operating expenses up 5%. With this in mind, it's a fairly logical step to make the most of GoPro's intellectual properties, particularly given that the company abandoned drone development many years ago.

According to IAM, the patents that have been sold to Skydio are believed to include technology related to content capture, data processing, hardware, and vehicle guidance. Previously GoPro held over 1000 patents relating to its camera and drone technology.

Broadening the GoPro niche

It's fair to say that things have been a little rocky for GoPro in recent years, with behemoths like DJI nipping at its heels by entering its core action camera market, as well as having access to significantly more R&D resources, particularly when it comes to processor development. GoPro has always struggled to find a way to broaden its niche from the rather narrow, and low profit margin market of action cameras to other types of product line.

Recently, GoPro did purchase Forcite Helmet Systems, with a mind to producing its own GoPro branded smart helmet designs, and the fruits of this acquisition are expected to be seen sometime in 2025. GoPro is also aiming to partner with other helmet manufacturers to bring smart technology to their own product lines.

GoPro is unlikely to be going anywhere, but current events do speak to how difficult the market is right now, as well as showing that market leaders are always living with the ever present threat of rivals unless they can stay ahead of the curve with innovative products. However, the ownership of so many patents does give GoPro some potential clout at heading off the threat of rival companies.

A case in point is GoPro's Hypersmooth stabilisation, which has been emulated across all flagship action camera lines, including 360 cameras. GoPro is understandably protective over such intellectual property, and earlier this year it launched a legal challenge against Arashi Vision - Insta360 to you and I - for infringing patents related to ""novel and proprietary SuperView, virtual lens, HyperSmooth, and Horizon Leveling technology."

As always, it'll be interesting to see how this all plays out, and we'll be keeping a close eye on things from RedShark HQ.

tl;dr

• GoPro has sold 114 patents to drone company Skydio as part of a company restructuring, following significant losses and layoffs in 2023.
• The patents include technology related to content capture, data processing, hardware, and vehicle guidance, and GoPro previously held over 1,000 patents.
• GoPro faces stiff competition in the action camera market, particularly from DJI, and has struggled to expand beyond its niche market.
• Despite recent challenges, including ongoing legal actions to protect its intellectual property, GoPro has plans for product innovation, such as smart helmet designs from its acquisition of Forcite Helmet Systems.