Insights

The week of June 29 brought a flurry of regulatory activity from the Department of Transportation (DOT), the Federal Aviation Administration (FAA), and the Transportation Security Administration (TSA) impacting companies across sectors including airlines, supersonic aircraft manufacturers, drone operators, and owners/operators of critical infrastructure facilities.  A summary of the key developments is below.

On June 4, 2026, Rep. Scott Fitzgerald (R-WI-5) introduced a bill that would limit the ability of people and entities seen as threats to U.S. national security to obtain and enforce patents. If enacted, the Prohibiting Adversarial Patents Act of 2026 (H.R. 9142) would leverage use of patent law as a national security tool, with consequences for companies operating in technology-intensive sectors, including drones, telecommunications, semiconductors, artificial intelligence, and advanced manufacturing. The proposed legislation, currently under review by the U.S. House Judiciary Committee, is particularly focused on persons and entities with connections to the People’s Republic of China.

The EU Cyber Resilience Act (CRA) is an EU product cybersecurity law for connected products (formally, “products with digital elements” under the CRA) commercialized in the EU; it entered into force on 10 December 2024, with direct application across the EU. Full application begins 11 December 2027, but one of its most operationally demanding provisions takes effect in just under 100 days, on 11 September 2026: the mandatory vulnerability and incident reporting under Article 14 CRA.

The first applications to lift an automatic suspension under the Procurement Act 2023 (the Act) have recently been decided. In Parkingeye Limited v Velindre University NHS Trust & Anor [2026] EWHC 1019 (TCC), handed down on 1 May 2026, HHJ Keyser KC dismissed applications by two NHS contracting authorities to lift the suspension preventing them from concluding a car park management services contract. This is the first judicial consideration of the new test under section 102(2) of the Act.

On May 6, 2026, the Federal Aviation Administration (FAA) published a long-awaited Notice of Proposed Rulemaking (NPRM) that would create a formal process for designating drone-free zones — known as Unmanned Aircraft Flight Restrictions (UAFRs) — over critical infrastructure facilities. The proposed rule has significant implications for the entire drone ecosystem. Facility operators across a broad range of industries would gain a potential pathway to restrict unauthorized drone access to their airspace, while commercial drone operators and companies that rely on UAS services face new compliance obligations, operational constraints, and potential criminal liability in designated zones.

In March 2026, the UK Information Commissioner (ICO) published guidance on the new lawful basis for processing personal data introduced by the Data (Use and Access) Act 2025 (DUAA): the recognised legitimate interest (RLI) lawful basis. Controllers may now rely upon one of five pre-approved conditions, each focused on specific public-interest justifications, for personal data processing.

On March 4, 2026, the European Commission proposed the Industrial Accelerator Act (IAA), a draft regulation that aims to reverse the decline of the EU’s manufacturing sector while supporting the adoption of cleaner technologies. This client alert is the third in a three-part series dedicated to the IAA. In our first alert, we provided an overview of the draft regulation. In a second alert, we took a closer look at the new foreign direct investment (FDI) review framework that the IAA would establish for certain strategic sectors. In this third and final instalment of the series, we focus on the implications of the proposal for the automotive industry.

On March 4, 2026, the European Commission proposed the Industrial Accelerator Act (IAA), a draft regulation that aims to reverse the decline of the EU’s manufacturing sector while supporting the adoption of cleaner technologies. This client alert is the second in a three-part series dedicated to the IAA. In our first alert we provided an overview of the draft regulation. In this second alert, we take a closer look at the new foreign direct investment (FDI) review framework that the IAA would establish for certain strategic sectors.

[1] In a recent development, the UK Supreme Court ruled that Artificial Neural Networks (ANNs) are not excluded from patentability due to being a computer program “as such.” In doing so, the Court set out the framework of a new test for the UK Intellectual Property Office (IPO) to use when evaluating the patentability of computer. The ruling breaks down barriers to the patenting of AI algorithms in the UK and paves the way for a wider change in the UK IPO’s approach to assessing excluded subject matter.

On March 4, 2026, the European Commission proposed the Industrial Accelerator Act (IAA), a draft regulation that aims to reverse the decline of the EU’s manufacturing sector while supporting the adoption of cleaner technologies. The proposal introduces “Made in EU” and low-carbon requirements in public procurement and public support schemes, to create lead markets for European industrial products. The proposal also seeks to increase value creation in the EU and bolster the EU’s economic security by setting conditions for major foreign direct investments (FDI) in strategic sectors.

On January 28, 2026, the Federal Aviation Administration (FAA) announced that it would reopen the comment period for the Notice of Proposed Rulemaking (NPRM) titled “Normalizing Unmanned Aircraft Systems Beyond Visual Line of Sight Operations” for fourteen days. This NPRM, jointly published with the Transportation Security Administration (TSA) on August 7, 2025, introduces performance-based regulations for beyond visual line of sight (BVLOS) unmanned aircraft systems (UAS) operations and the third-party services that support them. Although the NPRM’s initial comment period closed on October 6, 2025, the FAA is now accepting additional feedback through February 11, 2026, with a particular focus on the proposed rule’s right-of-way and detect-and-avoid requirements. The FAA previously rejected formal requests to extend the initial comment period, citing the deadline imposed by Executive Order 14307.

On October 16, 2025, the European Commission and the High Representative of the Union for Foreign Affairs and Security Policy presented their Defense Readiness Roadmap 2030 to the EU Member States. This comprehensive plan aims to strengthen European defense capabilities. It follows, and should be read together with, the Commission’s Defense Readiness Omnibus that was published in June 2025. The Omnibus contains a set of proposals to facilitate defense investments and boost EU Member States’ responsiveness to today’s security challenges.

The UK’s increased defence spending and zero-tariff trade on aircraft parts with the US is generating broad interest in the UK defence sector.

On 2 June 2025, the UK Government unveiled its 2025 Strategic Defence Review titled the “Plan for Change for Defence” (the “2025 SDR”), heralding it as the dawn of a new era in British defence and security. Hailed as a landmark by the Prime Minister, the 2025 SDR underscores the urgent need to address daily cyber threats and embrace the rapid evolution of technology that is reshaping the battlefield. It also emphasises both the necessity of and the opportunities that this approach affords to create a new partnership with industry and radically reform procurement, leading to the creation of a “defence dividend” of jobs, wealth and opportunity throughout the UK.

The UK’s 2025 Strategic Defence Review (SDR)[1] marks a significant shift in national defence policy, emphasising enhanced military readiness and domestic industrial growth. This comprehensive plan is poised to reshape the landscape for defence contractors across the country. This follows the enactment of the UK’s new Procurement Act 2023, which took effect on 24 February 2025, also impacting defence contractors. More information on this can be found in our alert: What Defence Contractors Need To Know About the New UK Procurement Act.

The UK’s new Procurement Act 2023 (the “Act”) took effect on 24 February 2025. More information on this can be found in our alerts: Understanding the UK’s New Procurement Regime in 2025 and Changes to the UK Procurement Regime in 2025: An Introduction to the Debarment List.

In a long-awaited opinion, on September 9, 2019, the U.S. Court of Appeals for the Eleventh Circuit in United States v. Aseracare, Inc., et al, unanimously vacated AseraCare’s False Claims Act (FCA) victory and remanded the case for further proceedings.[1]  While this might seem a victory only for the Government at first blush, the opinion contains key takeaways for defendants that will likely reach far beyond just this case.

On January 30, 2017, President Trump issued an Executive Order informing agencies that “for every one new regulation issued, at least two prior regulations” must “be identified for elimination.” Details of this are discussed more fully in our blog post. According to the Order, guidance on implementation will be forthcoming from the Director of the Office of Management and Budget.

On September 30, OMB issued interim guidance on reviewing reports submitted by contractors pursuant to the American Recovery and Reinvestment Act requirements. In addition to providing guidance on the scope of agency review, the memo sets forth a tight schedule for agency review and comment and gives contractors a three-day window to respond to agency comments, all of which will be made public on federalreporting.gov.

On August 31, 2009, the Defense Security Cooperation Agency released a revised set of Guidelines for Foreign Military Financing of Direct Commercial Contracts and Contractor's Certification & Agreement with DSCA which are to be implemented no later than October 1, 2009. The principal changes focus on the difficult compliance issue of identifying non-U.S. content in the products and underscore DSCA's increasingly inflexible approach to that issue, including determination whether spares and post-delivery warranty or maintenance effort constitute non-U.S. content ineligible for financing, a problem that has been particularly troubling for companies furnishing information technology products to the Government of Israel under the FMF program.