DeepSeek Faces US Trademark Battle Amid Broader Legal Woes

TechCrunch reports that Chinese AI firm DeepSeek, already involved in privacy concerns in Europe, allegations of intellectual property theft in the US, and a major cyberattack, is facing a new legal challenge: a US trademark dispute.

DeepSeek recently applied for a trademark with the US Patent and Trademark Office only to find that another company, Delson Group Inc., had filed for the same trademark just 36 hours earlier.

Delson Group, a Delaware-based company led by Willie Lu, claims prior use of the name “DeepSeek” since 2020, potentially complicating the Chinese company’s ability to establish its brand in the US market. 

Lu is a self-described AI and wireless technology expert with connections to Stanford and the FCC and has a history of trademark filings and disputes, with over two dozen cases involving major companies like Tencent and TracFone Wireless. His company has registered trademarks for well-known Chinese brands, including Geely and China Mobile, suggesting a pattern of trademark squatting.

“Trademark squatting” is registering brand names without intending to use them, often to sell the rights at a later profit. Notable past cases include Tesla’s battle over its name in China, which it ultimately settled.

Under US trademark law, the first entity to use a mark in commerce typically holds the rights to it unless bad faith can be proven. Delson Group’s earlier claim, along with its live AI-related website and training programs, strengthens its position against DeepSeek.

If upheld, Delson could prevent DeepSeek from using its brand name in the US or even claim “reverse confusion” due to DeepSeek’s growing prominence.

DeepSeek’s predicament underscores the need for AI companies to proactively protect their trademarks, particularly in competitive and emerging industries. Legal teams should advise clients on defensive trademark strategies, including early registration and legal actions to challenge bad-faith filings.