Drones in the Workplace Gregory J. Lestini, Partner Bricker & Eckler LLP JULY 2016

Major Areas of Focus 1. Regulation 2. Liabilities 3. Opportunities JULY 2016

History Balloons Kites “Kettering Bug” JULY 2016 Copyright: Air & Space Magazine Available at: http://www.airspacemag.com/photos/a-brief-history-of-unmanned-aircraft-174072843/?no-ist JULY 2016

History FAA Authority “Air-Rights” JULY 2016 Available at: http://www.brookings.edu/research/reports2/2014/11/drones-and-aerial-surveillance JULY 2016

Alphabet Soup (with Numbers!) Definitions Alphabet Soup (with Numbers!) FAA UAS COA UAV NAS VO PIC 333 UA 107 FAA. COA. – Certificate of Authority NAS – National Airspace System PIC – Person in Command UA. – Unmanned Aircraft UAS. – Unmanned Aircraft Systems UAV. – Unmanned Aircraft Vehicles VO. – Visual Observer 333. – Overarching code section (Airworthiness) 107. – New section (effective August 9) Via: http://asperkids.com/wp-content/uploads/2013/10/alphabet-soup.jpg JULY 2016

Major Areas of Focus Hobbyists Registration Licensure Regulation JULY 2016

Regulation Register Label >13 y/o Inspect Safety Guidelines Hobbyist Register Label >13 y/o Inspect Safety Guidelines Registration: More than 0.55 lbs, less than 55lbs Safety Guidelines: Fly at or below 400 feet Keep your UAS within sight Never fly near other aircraft, especially near airports Never fly over groups of people Never fly over stadiums or sports events Never fly near emergency response efforts such as fires Never fly under the influence Be aware of airspace requirements Available at: www.faa.gov JULY 2016

Regulation Register Label >16 y/o Pilot TSA tested Inspect Small UAS - Commercial Register Label >16 y/o Pilot TSA tested Inspect JULY 2016

Regulation Line of Sight Daytime Not over people 100 mph 400 ft Small UAS - Commercial Line of Sight Daytime Not over people 100 mph 400 ft Class G airspace* Must keep the aircraft in sight (visual line-of-sight)* Must fly under 400 feet* Must fly during the day* Must fly at or below 100 mph* Must yield right of way to manned aircraft* Must NOT fly over people* Must NOT fly from a moving vehicle* JULY 2016

Certificate of Waiver (COA) Regulation Certificate of Waiver (COA) Exempts most small UAS requirements. Pilot certification. Registration. Certificate of Waiver. Part 107 includes the option to apply for a Certificate of Waiver (CoW). This CoW will allow an sUAS operation to deviate from certain provisions of part 107 if the Administrator finds that the proposed operation can be safely conducted under the terms of that CoW. Complete description of the proposed operation and a justification, including supporting data and documentation (as necessary), that establishes that the proposed operation can safely be conducted under the terms of a CoW. JULY 2016

Regulation Over 55lbs. Pilot certification. Registration Large UAVs Over 55lbs. Pilot certification. Registration Section 333 exemption. “The Section 333 Exemption process provides operators who wish to pursue safe and legal entry into the NAS a competitive advantage in the UAS marketplace, thus discouraging illegal operations and improving safety.” -www.faa.gov Airworthiness exemption (aircraft) Blanket COA Can go beyond the blanket COA but must apply separately. JULY 2016

Major Areas of Focus Liabilities Injury Privacy Other? JULY 2016

Liabilities Persons Property Transfer of liability Injury JULY 2016 Damage to the UAS Regulatory liability: does the policy cover unauthorized use? Trespass and Privacy: Next slide Cyber: Collection, storage and transmission of data Personal/Property - Transfer of Liability: What if the pilot is making manuvers to comply with law, but ends up causing damage? Available at: http://www.dummies.com/store/product/Drones-For-Dummies.productCd-1119049776.html JULY 2016

Liabilities Expectation Navigable airspace Government intrusion Privacy Expectation Navigable airspace Government intrusion Is there any expectation Navigable: CA law says any drone piloted below the navigable airspace…but is there anything below the navigable airspace. FAA says no. Government intrusion – will be subject to all normal constitutional protections, until otherwise decided (plain sight?) Via: http://www.skycandystudios.com/blog-1/2015/2/26/the-benefits-of-using-drone-videos-for-real-estate JULY 2016

Major Areas of Focus Liabilities JULY 2016

Major Areas of Focus Military Innovation Private Sector Public Sector Opportunities Military Innovation Private Sector Public Sector Education JULY 2016

Opportunities Safety Humanitarian Innovation Military/Innovation Via:http://www.telegraph.co.uk/content/dam/video_previews/4/w/4wadb2cdrjzhyb9gh9ww0mc99z4uoue-large.jpg JULY 2016

Opportunities Delivery of goods Private Sector JULY 2016 7 – eleven testing Amazon has been testing for a few years. Line-of-sight is problematic; All requirements are waivable, but will they be allowed? JULY 2016

Opportunities Private Sector Real Estate Insurance Oil & Gas Renewables Safety/Security Media/Advertising Is there any expectation Navigable: CA law says any drone piloted below the navigable airspace…but is there anything below the navigable airspace. FAA says no. JULY 2016

Opportunities Safety/Security Government Services Education Public Sector Safety/Security Government Services Education http://dronelife.com/wp-content/uploads/2016/01/Footville.jpg http://s.newsweek.com/sites/www.newsweek.com/files/styles/lg/public/2016/04/08/drones-rescue-drone-europe-dji.jpg http://onemandrone.com/wp-content/uploads/2015/06/FireDrone2-HD2.jpg JULY 2016

Opportunities General Use Research Instruction Clubs Education Via: http://newsroom.ccsd.net/wp-content/uploads/2016/01/nm-rancho-drone-program.jpg JULY 2016

Opportunities General Use: Safety Building Maintenance Marketing Education General Use: Safety Building Maintenance Marketing JULY 2016

Opportunities Research: Education Research: Alliance for System Safety of UAS Through Research Excellence (ASSURE) 15 Universities studying the impact of drone collisions. Ohio State included. JULY 2016

Opportunities Instruction: Students Instructors Education JULY 2016 http://www.wsj.com/articles/theres-no-flying-in-drone-school-1406311856 JULY 2016

Opportunities Instructors: Education Small UAS Requirements. No Compensation. Must be a certified pilot. No student “proxy”. Community events allowed. JULY 2016

Opportunities Students: Education Clubs. Community Events. Faculty advisors: No compensation. No piloting.* * “Limited assistance” to students JULY 2016

Other Considerations Regulations Future State regulations Local regulations Future 2.5 Million Drones by 2017 >7 Million by 2020 Apps/Autonomy/??? JULY 2016

Fact Pattern #1 Student Club Students start a drone club at Bricker High School. They hold their meetings on school grounds, after the school day, but enlist a teacher to help them with the club. The teacher does not get paid for her assistance and only occasionally helps the students navigate their drones. JULY 2016

Classroom Instruction Fact Pattern #2 Classroom Instruction An instructor at Bricker High School decides to teach a class on the maintenance, operation, and regulations of drones. Students may sign up for the class as an elective, but the instructor gets paid for his work. As part of the preparation for the class, the instructor buys his own drone and practices at home. JULY 2016

Fact Pattern #3 School Business Use The facilities director at Bricker High School decides to bring in her drone from home to inspect the roof of the school on a regular basis. She flies the drone where she can see it and makes sure to never fly it over students or when there are other aircraft in the area. JULY 2016

Non-sanctioned use on school grounds Fact Pattern #4 Non-sanctioned use on school grounds Students sneak on to the field at Bricker High School and fly their 4 lb drone around the field at high speeds. Eventually, on of the students takes the controls and flies the drone directly into the scoreboard, breaking part of the display. The drone then falls and hits another student, who has to go to the hospital for his/her injuries. JULY 2016

Contact Gregory J. Lestini Partner, Bricker & Eckler LLP Columbus Office 100 South Third Street Columbus, Ohio 43215 glestini@bricker.com 614.227.4893 JULY 2016