DeepSeek Trademark Issue in the US - Potential Problems

DeepSeek Faces U.S. Trademark Challenge

The Chinese AI firm, DeepSeek, already navigating accusations of intellectual property theft, privacy concerns, and a substantial cyberattack, is now confronting a new legal issue: a trademark dispute within the United States.

Trademark Application Timing

DeepSeek recently submitted an application to the U.S. Patent and Trademark Office (USPTO) to secure the trademark for its AI chatbot applications, products, and associated tools. However, the timing proved unfavorable. Just thirty-six hours prior, another entity had already filed for the “DeepSeek” trademark – a Delaware-based company known as Delson Group Inc.

Delson Group's Claims

Delson Group maintains that it has been marketing DeepSeek-branded AI products since the beginning of 2020. The company’s application lists a residential address in Cupertino, California, and identifies Willie Lu as its CEO and founder.

Connections Between Founders

Interestingly, Willie Lu shares an academic background with DeepSeek’s founder, Liang Wenfeng, both having graduated from Zhejiang University. Lu’s LinkedIn profile describes him as a “semi-retired” consulting professor at Stanford University and an advisor to the FCC.

Lu's Professional Background

Throughout his career, Lu has primarily focused on the wireless communications sector. Additional online sources, discovered by TechCrunch, link Lu to lectures and training programs centered around wireless standards, accessible through the email address provided in the trademark filing.

Educational Course and Expertise

Furthermore, Lu hosts an educational course titled “DeepSeek” in Las Vegas, focusing on “AI Super-Intelligence,” with tickets starting at $800. The course website, featured in Delson Group’s trademark application, highlights Lu’s “about 30 years’ expertise in ICT [information and communications technology] and AI fields.”

Attempted Contact with Lu

When contacted for comment regarding the trademark filing, Lu expressed willingness to “meet and talk” in Palo Alto or Saratoga, California. However, a subsequent request for further information went unanswered.

History of Trademark Disputes

A USPTO search reveals that Delson Group, through Lu, has been involved in over two dozen trademark disputes with various organizations, including GSMA, Tencent, and TracFone Wireless. Some of these trademarks were abandoned, or applications were canceled.

Existing Delson Group Trademarks

A broader USPTO trademark search shows 28 trademarks registered under Delson Group. Notably, several of these trademarks belong to prominent Chinese companies, such as “Geely,” the automotive manufacturer, and “China Mobile,” the telecommunications provider.

Potential Trademark Squatting

This pattern raises concerns about potential trademark squatting – the practice of registering a trademark with the intention of selling it later or capitalizing on an established brand’s recognition. A well-known instance involved Zhan Baosheng, who successfully trademarked “Tesla” and related elements in China before settling with the company for an undisclosed sum.

DeepSeek's Limited Options

Currently, DeepSeek’s options are constrained. U.S. law generally favors the first user of a trademark, unless bad faith registration can be demonstrated.

Legal Analysis

Josh Gerben, an IP attorney and founder of Gerben IP, explained to TechCrunch that Delson Group possesses several advantages. “They filed first, they claim earlier use – 2020 versus DeepSeek’s claimed 2023 start date – [and] they have a live website showing AI-related activities, including training events.”

Potential for Legal Action

Gerben suggests Delson Group could potentially assert “reverse confusion” or even pursue legal action to prevent DeepSeek from using its brand name in the U.S. He stated, “DeepSeek may actually have a trademark problem in the United States where there could be this prior rights holder – Delson Group – and that prior rights holder may have a very good case for trademark infringement.”

Precedent in AI Trademark Cases

This isn’t the first instance of an AI company encountering trademark challenges. OpenAI previously failed to trademark “GPT” due to the USPTO deeming the term too generic.

OpenAI's Ongoing Dispute

OpenAI is also currently engaged in a dispute with technologist Guy Ravine over the use of “Open AI,” which Ravine claims he proposed as part of an “open source” AI vision around 2015 – coinciding with OpenAI’s founding year.