Fines Against Other Companies May Be Coming

The FAA's investigation of SkyPan International, which resulted in a $1.9 million fine being levied against the company by the agency, was a 16 month process that involved, among other things, a legal battle over SkyPan's business documents.

Motherboard online reports that the investigation began with an anonymous complaint filed with the FAA in January 2012 claiming that SkyPan was operating in Class B airspace to conduct commercial aerial photography. The investigation began that month.

Other complaints came in during that year ... a fairly common occurrence during a time when almost no one had authorization to fly, and companies would often turn each other in in an effort to gain a competitive advantage.

The FAA cites as evidence several photographs taken by SkyPan, but it is not clear if they were taken by a UAV or using a helicopter or other manned aircraft. John Wilkins, an FAA safety inspector, admitted as much in a document obtained Motherboard.

But another document obtained by the FAA showed that Macklowe Properties paid SkyPan over $53,000 for at least one photo session involving an unmanned aircraft. Wilkins said that was the smoking gun that proved SkyPan was involved in commercial activity prior to being granted a Section 333 exemption. The company has since been granted that exemption and can now operate entirely legally.

The other issue involves an FAA subpoena for documents that Skypan, through its attorney, says goes too far. But a judge compelled the company to turn over all of its contracts, and it was on that basis that the agency levied the nearly $2 million fine.

At the House Aviation Subcommittee hearing Wednesday, FAA Deputy Administrator Michael Whitaker said that the FAA has no idea how many companies are "illegally", at least by the FAA's interpretation of the rules, operating UAVs. "The numbers are too big for us to track, and we don't have those resources," he said. "We've had several hundred investigations, and we've issued 20 civil penalties."

Whitaker also said that the agency does not want to issue fines unless it is necessary. "If we don't have to use enforcement, we don't use enforcement," he said. But he also said that the agency is "clearing through a lot of the backlog, but [violations] are coming through at a good clip."

Lisa Ellman, an attorney with expertise in the UAV arena, told Motherboard that it is likely more fines are coming, and that the FAA's huge fine against SkyPan is a warning to other operators conducting commercial operations without an exemption. And, she said, the FAA is "under a lot of pressure to clamp down on some irresponsible activity."

FMI: http://motherboard.vice.com/read/the-sophisticated-faa-investigation-that-led-to-the-largest-drone-fine-ever