DeepSeek’s Trademark Loss: The Legal Landmine in AI’s Branding Wars
The Hidden Battle in AI: Trademarks as Weapons
In the high-stakes world of artificial intelligence (AI), innovation isn’t the only thing that matters—owning your brand is just as critical. DeepSeek, a rising Chinese AI startup, just ran into a brutal lesson on this front when it lost a crucial trademark battle in the U.S.
The culprit? A company that beat them to the punch by just 36 hours.
But this case isn’t just about one company’s misfortune. It highlights a growing war over AI trademarks and the legal loopholes that bad actors exploit. Let’s break down why this matters—and how AI startups can protect themselves.
What Went Wrong for DeepSeek?
DeepSeek filed its trademark with the U.S. Patent and Trademark Office (USPTO), confident it was staking its claim. But then came a shocker: another company, Delson Group Inc., had already submitted an application for the exact same name—just 36 hours earlier.
Delson Group, led by Willie Lu, claims it has been using the “DeepSeek” brand since 2020, even running a website and educational course under the name. If true, that gives Delson a significant legal edge.
However, there’s a twist: Delson has a history of filing multiple high-profile trademarks, including names linked to major Chinese AI companies. This raises a major red flag—was this a case of legitimate prior use, or trademark squatting?
The Key Legal Fights at Play
1. First-to-File vs. First-to-Use: Who Really Owns the DeepSeek Trademark?
The U.S. operates under a first-to-use trademark system. This means that:
A company that can prove earlier commercial use of a name has a stronger claim than one that simply files paperwork first.
DeepSeek says it used the brand in early 2023.
Delson claims usage since 2020 and filed first.
If Delson can show real-world proof—ads, invoices, or an operational business—DeepSeek could be in serious trouble. But if DeepSeek can argue Delson’s claim is hollow, they might have a chance.
🔹 Risk for AI Startups: Being well-known isn’t enough—you need legal proof of first use for your AI trademark.
2. Trademark Squatting: A Legal Loophole or a Clear Violation?
Here’s where things get murky. Delson has a track record of filing for big-name AI trademarks linked to Chinese tech firms like Geely and China Mobile. This suggests a strategy of trademark squatting—where companies register names not to use them, but to sell them later for profit.
Key signs of squatting: ✅ Filing for well-known or emerging AI brand names. ✅ No real intention of using them in commerce. ✅ A history of similar opportunistic filings.
If DeepSeek can prove Delson had no genuine intent to use the DeepSeek trademark, they could attempt to cancel the registration.
🔹 Risk for AI Startups: Opportunistic filers can block your AI brand—and charge you a premium to get it back.
3. The Cost of Losing: Financial and Branding Fallout for DeepSeek
Losing this AI trademark fight is more than a legal setback—it’s a direct hit to DeepSeek’s business strategy.
Potential consequences:
Rebranding costs: New logo, marketing, and domain changes.
Legal expenses: Court battles can be lengthy and expensive.
Market confusion: Customers might mistake Delson’s AI for DeepSeek’s.
For an AI company trying to scale in the U.S., this kind of disruption is a nightmare.
🔹 Risk for AI Startups: A lost trademark can derail investor confidence and market expansion.
4. The OpenAI Lesson: AI and Trademarks Are a Mess
DeepSeek isn’t alone in this struggle. Even OpenAI has had branding headaches:
“GPT” was rejected as an AI trademark for being too generic.
The phrase “Open AI” is tied up in a separate dispute.
As AI evolves, trademark disputes are becoming the norm, not the exception.
🔹 Risk for AI Startups: AI branding is a legal battlefield—companies must think ahead to secure their trademarks.
DeepSeek’s Options: Fight for the Trademark or Rebrand?
DeepSeek now faces a tough choice. They can: 1️⃣ Challenge Delson by proving earlier use before 2020. 2️⃣ Argue trademark squatting and try to cancel the AI trademark registration. 3️⃣ Negotiate a buyout, though it may be costly. 4️⃣ Rebrand and move forward—at a price.
Each option carries risk, but doing nothing could mean surrendering their AI brand identity in the U.S.
The Takeaway: A Survival Guide for AI Startups on Trademarks
DeepSeek’s misfortune is a wake-up call for AI founders. Want to avoid the same fate? Follow these golden rules:
✅ File early – Don’t wait until your AI brand gains traction. ✅ Do a deep trademark search – Ensure your AI name isn’t already in use. ✅ Monitor bad actors – Watch for potential trademark squatting attempts.
In the AI arms race, owning your brand is as important as building great technology. Because if you don’t lock down your AI trademark, someone else will.
FAQ: AI Trademarks Explained
❓ What is trademark squatting? ➡ It’s when a company registers an AI trademark without intending to use it, hoping to profit from selling it later.
❓ Can DeepSeek still win its case? ➡ Yes, if they can prove earlier use or expose Delson’s bad-faith filing.
❓ How can AI startups avoid trademark issues? ➡ File early, conduct thorough searches, and monitor for suspicious registrations.
❓ Why are AI trademarks such a big deal? ➡ As AI companies compete for market dominance, branding rights are becoming a legal battlefield.
❓ What’s the worst-case scenario for DeepSeek? ➡ Losing the name, rebranding expenses, and a competitive disadvantage in the U.S.
Final Thought: AI’s Branding War Is Just Beginning
AI startups can’t afford to ignore trademarks. The legal landscape is only getting tougher, and failing to act early can cost companies their AI brand, their reputation, and millions in legal battles.
The question isn’t if your AI trademark will be challenged—but whether you’re prepared to fight back.