Policy & Regulation Research & Innovation Tech Business

🚀 DeepSeek’s U.S. Trademark Turmoil: A High-Stakes Battle in the AI Gold Rush 💰

vc_pitcher
Chinese AI company DeepSeek, already embroiled in allegations of intellectual property theft and European privacy investigations, is now dealing with another major challenge—a trademark dispute in the United States. On Tuesday, DeepSeek submitted an application to the U.S. Patent and Trademark Office (USPTO) to secure the trademark rights for its AI chatbot apps and tools. However, the company was just a little too late. A mere 36 hours earlier, another entity, Delaware-based Delson Group Inc., had already filed for the same trademark—"DeepSeek." A Rival Claim to the Name Delson Group asserts that it has been marketing AI products under the DeepSeek brand since early 2020. The company’s trademark filing lists its headquarters as a residence in Cupertino, California, and names its CEO and founder as Willie Lu. Lu, an alumnus of Zhejiang University—the same institution where DeepSeek's founder, Liang Wenfeng, studied—claims on his LinkedIn profile to be a "semi-retired" consulting professor at Stanford and an advisor to the U.S. Federal Communications Commission (FCC). His professional background largely revolves around the wireless industry. Intriguingly, Lu also offers a training program called "DeepSeek" in Las Vegas, focused on "AI Super-Intelligence." Priced at $800 per ticket, the course is prominently featured on Delson Group’s website, which is linked to its USPTO trademark application. The website touts Lu’s "30 years of expertise" in AI and ICT (Information and Communications Technology). When contacted via the email address associated with the trademark filing, Lu responded that he would be open to a meeting in Palo Alto or Saratoga. However, he did not reply to any follow-up requests. A Pattern of Trademark Disputes A deeper dive into Delson Group’s history reveals a notable pattern of trademark disputes. A search in the USPTO’s Trademark Trial and Appeal Board Inquiry System lists more than two dozen past conflicts between Delson Group and major organizations, including Tencent, GSMA, and TracFone Wireless. In some cases, Delson abandoned the trademarks or had pending applications canceled. Additionally, a broader USPTO search reveals 28 trademarks registered under Delson Group, including names that belong to major Chinese corporations. These include “Geely,” the well-known Chinese automaker, and “China Mobile,” the Hong Kong-based telecommunications giant. This history suggests that Delson Group may be engaging in trademark squatting—registering trademarks not for business use, but to later sell them or leverage the brand recognition of established companies. Such tactics are not unprecedented. One of the most infamous trademark squatting cases involved Chinese businessman Zhan Baosheng, who registered Tesla’s English name, logo, font, and Chinese transliterated name before the company formally entered China. Tesla later settled the matter for an undisclosed sum. Legal Challenges Ahead for DeepSeek DeepSeek's legal options in this case may be limited. Under U.S. trademark law, priority is generally given to the first entity to use a trademark in commerce. This means that unless DeepSeek can prove bad faith on the part of Delson Group, the latter may have a legitimate claim to the name. “DeepSeek could attempt to negotiate a coexistence agreement if they can prove their AI services differ significantly from those of Delson Group,” said Josh Gerben, an attorney specializing in intellectual property law. “However, Delson has a strong case. They filed first, claim to have used the name since 2020—three years before DeepSeek—and have an active website promoting AI-related events and products.” Gerben further suggested that Delson Group could even file a "reverse confusion" lawsuit. Given DeepSeek’s growing international recognition, Delson might argue that DeepSeek's prominence unfairly overshadows its original claim to the trademark, potentially blocking DeepSeek from using its own brand name in the U.S. Precedents in AI Trademark Disputes This isn’t the first time an AI company has faced legal hurdles over trademarks. OpenAI, for example, attempted to register “GPT” as a trademark but was denied by the USPTO, which ruled the term too generic. OpenAI has also been locked in a legal battle with technologist Guy Ravine, who claims he proposed the name “Open AI” in 2015 as part of an open-source initiative. For DeepSeek, this trademark conflict adds yet another complication to an already tumultuous year. Whether it chooses to fight Delson Group in court, attempt a settlement, or rebrand for the U.S. market remains to be seen.

Chinese AI disruptor DeepSeek, already navigating the choppy waters of IP theft allegations and privacy probes in Europe, is now locked in a high-stakes trademark showdown in the U.S. market. This isn’t just about a name—it’s about market dominance, brand equity, and billions in potential valuation.

In a race against time, DeepSeek’s USPTO filing for its AI chatbot apps and tools was scooped by just 36 hours by Delson Group Inc., a Delaware entity with a controversial history of trademark disputes. With AI’s market cap soaring, the question isn’t just who owns ‘DeepSeek’—it’s who stands to lose the most in this billion-dollar game.

A Rival’s Claim: Strategic Move or Squatting Scheme?

Delson Group’s CEO, Willie Lu, claims a 2020 stake in the DeepSeek brand, leveraging a $800 AI training program to bolster his USPTO filing. But with a track record of 28 trademarks—including names like ‘Geely’ and ‘China Mobile’—skepticism is high. Is this a legitimate claim or a calculated squat to extract value from DeepSeek’s rising star?

Legal Labyrinth: Can DeepSeek Navigate the U.S. Trademark Maze?

With U.S. law favoring first use, DeepSeek’s options are slim. Negotiation? Rebranding? Or a costly legal battle that could set a precedent for AI trademarks worldwide. The stakes? Nothing less than DeepSeek’s U.S. market entry and global brand identity.

AI’s Trademark Wars: A New Frontier for Legal and Market Strategy

From OpenAI’s ‘GPT’ denial to DeepSeek’s current quagmire, the AI sector’s trademark battles highlight a critical, often overlooked aspect of tech scaling. As AI companies vie for supremacy, intellectual property strategy becomes as crucial as the technology itself.

For DeepSeek, the path forward is fraught with risk and opportunity. Will they fight, fold, or forge a new identity? In the cutthroat world of AI innovation, the answer could redefine their future.

, , , , , , ,
Chloe Vance
I work with early-stage startups and follow trends in tech and funding. Always looking for signals beyond the buzz.

Related news

Gadgets & Devices Research & Innovation Tech Business

WordPress.com Unleashes Free AI Website Builder: Create Your Site with Just a Chat! 💬🚀

Lana Brooks
Gadgets & Devices Research & Innovation

PlayStation Portal’s Cloud Streaming Beta Enhances with Auto-Pause and Screen Capture Features

Max Holden