The Chinese artificial intelligence firm DeepSeek is embroiled in allegations of intellectual property theft and is under scrutiny for privacy issues in Europe, in addition to dealing with a significant massive cyberattack. Now, the company faces yet another challenge: a trademark dispute in the U.S.
On Tuesday, DeepSeek submitted a trademark application to the U.S. Patent and Trademark Office (USPTO) for its AI chatbot applications, products, and services. However, it appears they were a bit too late. Just thirty-six hours prior, another entity had filed an application for the trademark “DeepSeek”: a Delaware-based company named “Delson Group Inc.”
Delson Group claims to have been marketing DeepSeek-branded AI products since early 2020. In their application, the business lists its address as a residential location in Cupertino, naming its CEO and founder as a Willie Lu.
Interestingly, Lu graduated from the same institution as DeepSeek’s founder, Liang Wenfeng, at Zhejiang University. According to his LinkedIn profile, Lu identifies himself as a “semi-retired” consulting professor at Stanford and an advisor to the FCC. His career predominantly revolves around the wireless sector. TechCrunch uncovered various other web pages linked to his email address that mention his lectures and training related to wireless standards.
Additionally, Lu conducts an educational course titled “AI Super-Intelligence” under the “DeepSeek” brand in Las Vegas, with tickets starting at $800 — prominently featured on the website listed in Delson Group’s trademark application. The site asserts that Lu boasts “approximately 30 years of experience in ICT [information and communications technology] and AI domains.”
When contacted regarding the trademark application, Lu expressed to TechCrunch a willingness to “meet and discuss” in Palo Alto or Saratoga. (This reporter is situated in NYC.) However, Lu did not reply to a subsequent inquiry.
A query for “Delson Group” in the USPTO’s Trademark Trial and Appeal Board Inquiry System reveals over two dozen disputes involving Lu and various organizations, including GSMA, Tencent, and TracFone Wireless. Delson has abandoned several trademarks it attempted to register or has canceled some of its pending applications.
A broader investigation through the USPTO’s Trademark Search tool reveals 28 trademarks registered under Delson, including some associated with prominent Chinese companies. For instance, Delson holds a trademark for “Geely,” the Chinese automobile manufacturer, and “China Mobile,” the telecommunications provider based in Hong Kong.
This pattern indicates a potential history of trademark squatting, where trademarks are filed with the intent to sell them later or capitalize on a brand’s recognition. A notable instance of trademark squatting involved Chinese entrepreneur Zhan Baosheng, who successfully registered the English name “Tesla” and related trademarks in China (Baosheng eventually reached a settlement with Tesla for undisclosed terms).
Nonetheless, DeepSeek’s options appear rather constrained at this stage. In accordance with U.S. law, the first party to use a trademark generally retains the rights to that trademark, barring evidence of bad faith in registration.
“While DeepSeek may potentially pursue a coexistence agreement if they can demonstrate they operate in distinct segments of AI from Delson Group, the U.S. company possesses several advantages,” commented Josh Gerben, a lawyer and founder of Gerben IP, a firm focused on intellectual property matters, to TechCrunch. “They were the first to file, they claim earlier use — 2020 compared to DeepSeek’s asserted 2023 launch — and they have an active website showcasing AI-related initiatives, including training events.”
Gerben noted that Delson Group might also assert “reverse confusion” due to DeepSeek’s swift ascension to visibility, or even take legal action to prevent DeepSeek from using its brand name within the U.S.
“DeepSeek might indeed find itself facing a trademark predicament in the U.S., as there seems to be a prior rights holder — Delson Group — who may very well present a strong case for trademark infringement,” Gerben remarked.
This scenario isn’t unprecedented, as numerous AI firms have encountered trademark-related challenges.
For instance, OpenAI’s attempt to secure the trademark “GPT” failed last February when the USPTO determined the term was overly generic. In recent months, OpenAI has also been in a legal battle with technologist Guy Ravine over the rights to “Open AI,” which Ravine contends he proposed as part of an “open source” AI vision around 2015 — coinciding with OpenAI’s founding year.
Compiled by Techarena.au.
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