Pursuant to the FAA Modernization and Reform Act of 2012, on Aug. 29, 2016, the Federal Aviation Administration (FAA) rules authorizing the operators of commercial unmanned aircraft systems—commonly known as drones—took final effect. See 14 C.F.R. Part 107 et seq. In a related development, on Sept. 20, 2016, the U.S. Department of Transportation (DOT) unveiled a new federal policy designed to accelerate the development and utilization of drones.

The FAA Part 107 Rules are similarly designed to expand drone use, as the agency concluded that it could generate more than $82 billion for the U.S. economy and create more than 100,000 jobs in the next decade. Another estimation has the commercial drone market reaching $120 billion by 2020. The Part 107 Rules institute wide-ranging reforms, including: (1) eliminating the case-by-case waiver approval for the use of drones for commercial purposes; (2) requiring drones to fly below 400 feet and be operated by a pilot at least 16 years old who has passed a written test; (3) forbidding drones from flying over people; and (4) banning drones from flying at night. Notably, the Part 107 Rules functionally eliminate any business opportunities for drone package delivery service, as the drones must remain within the pilots’ visual line of sight. That being said, Virginia Tech University will soon be delivering burritos on campus. Interest in use of drones is rampant, as more than 3,000 would-be drone pilots signed up on the first day the licensing test became available.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]