As camera-mounted drones have become more popular and less expensive, the technology has had regulators playing catch up and business owners wondering how they can use
the technology.

While the Federal Aviation Administration works on new rules about unmanned aircraft systems to permit commercial uses, businesses large and small are pushing to start using the devices for services from aerial land surveys to deliveries.

Right now in the U.S., the unmanned aircraft systems are generally only allowed for hobbyists and model aircraft makers, with a ban in place on commercial use.

The ideas and legal questions, however, are coming faster than the new regulations.

“I have a client in the process of purchasing a drone and has a fantastic idea to do technical work on construction sites in farming and renewable industries,” said Ed West, an attorney in Brooks Pierce’s Wilmington office.

“One of the things that has been tough is the lack of clarity of what he can and can’t do.”
West said he has gotten a number of similar calls for advice.

“There’s folks out there who have viable business ideas and trouble implementing them,” he said.

Though state lawmakers could not trump the federal process and open the skies to commercial uses, they did include a measure in the budget bill this year to provide some clarification for the first time about the devices in North Carolina.

In it, legislators outlined restrictions on using drones for surveillance of a person or private property without consent, with an exception for police in certain circumstances, and the introduction of a state licensing system.

Even without being able to address commercial services, the measure was important for positioning the state as one that is paying attention to drone technology and is friendly toward the growing industry, said Stephen Hartzell, a partner at Brooks Pierce in Raleigh.

“We are now a state that actually has on the books some legislation that governs the use of drones,” Hartzell said. “The General Assembly was interested in letting the UAS [unmanned aircraft systems] industry know that it is interested in the technology, in being the place for developers … There’s a number of states that have introduced legislation that’s not welcoming. I think that the goal here was to let folks know that, ‘Look, this is an industry that’s going to be regulated.’”

Hartzell watched the issue in the legislature this year for a broadcast media client who wanted to make sure any state rules did not ground drones used for newsgathering purposes.

The measure lawmakers approved exempts newsworthy or public events.

Nationally, the FAA estimates there could be up to 7,500 small commercial drones being used by 2018. A number of companies, including Amazon, which wants to develop a system for drone-based deliveries, are asking the FAA for exemptions to its commercial ban. Meanwhile, some startup companies specializing in drone services are seeing how far they can push
regulatory limits.

Hartzell said he fields questions about in the area where hobby flying meets commercial benefit.

If a hobbyist – defined as flying a device weighing less than 55 pounds under 400 feet and other restrictions – posts an aerial photo on social media and a company offers to buy it, where would it fall?

“I think where a lack of clarity comes in is at what point does something that feels like recreational or hobbyist use [become commercial]?” Hartzell said. “People are trying to figure out how to thread the needle.”

The first U.S. fine against a commercial drone operator – a $10,000 penalty the FAA imposed – was overturned earlier this year in light of the ongoing work on regulations.

Still, until more rules come out from the federal level, West said, some commercial uses could open people up to a cease-and-desist letter from the FAA.

“Seek advice,” West said, “and don’t assume you can do it.”