Silverlit X-UFO is...
In 2003 German students Daniel Gurdan and Klaus M. Doth participated in the national Jugend forscht ("Young Scientists") competition, presenting the radio-controlled, self-leveling quadrocopter they had developed (retroactively named "Jufo-Ufo"), and finished 4th place in the technology section. Further information can be found here.
Silverlit became aware of this through a local newspaper and contracted the inventors. The X-UFO was then developed as a toy-grade, inexpensive "interpretation" of the original design, with less sophisticated and cheaper sensory equipment, and started production in Silverlit's factory in China in late 2004.