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DeepSeek and the Brand Knot in the United States
Legal clash over ownership of AI brand
Isabella V30 January 2025

 

DeepSeek is facing a complex legal dispute in the United States over its trademark registration. The Chinese AI company has filed an application with the USPTO, but another company, Delson Group Inc., has already filed less than two days earlier. The issue comes amid previous disputes over intellectual property and strategic use of trademarks.

Key points:

  • Trademark Conflict: Delson Group filed the trademark “DeepSeek” shortly before the Chinese company.
  • Legal Precedence: U.S. law tends to favor first-users.
  • Previous Disputes: Delson Group has a long history of trademark disputes.
  • Possible Scenarios: DeepSeek may have to settle or prove its opponent’s bad faith.

The startup DeepSeek, which has recently emerged as a major player in the AI ​​space, is facing a new obstacle in its international expansion. After being accused of intellectual property infringement, embroiled in privacy investigations and hit by a cyberattack, the company now finds itself in the middle of a legal fight over its trademark in the United States. On Tuesday, DeepSeek filed an application with the United States Patent and Trademark Office (USPTO) to protect its name, but the move came at an unfortunate time: just 36 hours earlier, Delson Group Inc., a Delaware-based company, had already filed a trademark for the same name. According to the filing, Delson Group says it has been marketing products under the DeepSeek brand since 2020, three years before the Chinese company of the same name began operations. The U.S. company, whose registered address is in Cupertino, is led by Willie Lu, a former wireless industry veteran with academic ties to Stanford and the Federal Communications Commission (FCC). Lu also runs training courses called “DeepSeek,” which focus on advanced AI, starting at $800 per ticket.

Delson Group’s position may be legally sound, given that U.S. law recognizes first-in-commerce first-use of a trademark. The company also has an active website that showcases its AI business, which could strengthen its legal position. However, a look at its history suggests a trademark-grabbing strategy. USPTO database searches indicate that Delson Group has registered numerous trademarks belonging to major Chinese companies, including Geely and China Mobile. The company has also been involved in multiple disputes with companies such as GSMA, Tencent, and TracFone Wireless. This suggests that Delson Group may be pursuing a strategy of registering trademarks with the intent of reselling or capitalizing on their notoriety.

In the case of DeepSeek, the situation seems delicate. The Chinese company could try to negotiate a coexistence agreement, provided it can prove that their respective activities do not cause confusion among consumers. However, Delson Group, by virtue of its early registration and previous use of the name, could even sue DeepSeek for trademark infringement. According to intellectual property lawyer Josh Gerben, DeepSeek risks being at a disadvantage unless it can prove that Delson filed the registration in bad faith.

Intellectual property battles are not new to the AI ​​industry. OpenAI, for example, failed to trademark “GPT” because the USPTO deemed it too generic. OpenAI also faced a dispute with entrepreneur Guy Ravine, who claims to have used the name “Open AI” for an open-source AI project as early as 2015. The DeepSeek-Delson case is part of a broader context in which technology companies must navigate complex legal hurdles to protect their brands.

This dispute could determine the future of DeepSeek in the United States, requiring a careful balance between legal defense and marketing strategies.