DeepSeek’s Challenges with AI Trademark Issues in the U.S.
DeepSeek, a prominent AI company from China, faces numerous hurdles, including allegations of IP theft, privacy investigations in Europe, and a significant cyberattack. Adding to these troubles, DeepSeek is now confronted with trademark issues in the United States.
Complications Arise from Trademark Application
On Tuesday, DeepSeek filed a trademark application with the U.S. Patent and Trademark Office (USPTO) for its AI chatbot products and tools. Unfortunately, their application came just thirty-six hours after another company, Delson Group Inc., made a similar filing for the trademark “DeepSeek.”
Delson Group claims it has marketed AI products under this brand since early 2020. Their application lists a home address in Cupertino and identifies Willie Lu as the CEO and founder of the company.
Insights on Delson Group and Its Founder
Interestingly, both Willie Lu and DeepSeek founder Liang Wenfeng share an educational background, having graduated from Zhejiang University. Lu’s LinkedIn reveals that he is currently a “semi-retired” consulting professor at Stanford and has previously advised the FCC. He boasts extensive experience in the wireless sector, where he conducts lectures and training on wireless standards, as detailed on websites affiliated with Delson Group.
Moreover, Lu is hosting an educational course on “AI Super-Intelligence” in Las Vegas, charging attendees up to $800 per ticket. The website related to Delson Group’s trademark application claims that Lu has nearly thirty years of experience in both information and communications technology (ICT) and AI.
The Landscape of Trademark Disputes
When approached about the trademark application, Lu expressed a willingness to “meet and discuss” in Palo Alto or Saratoga, but did not respond to further inquiries. A deeper investigation into Lu’s background reveals that a search for “Delson Group” through the USPTO’s Trademark Trial and Appeal Board Inquiry System surfaces more than two dozen trademark disputes involving Lu and various companies, including major players like GSMA, Tencent, and TracFone Wireless.
Delson has abandoned several trademark applications and canceled others through its dealings with the USPTO. A broader search indicates that Delson currently holds 28 trademarks, some belonging to notable Chinese firms, including a trademark for “Geely,” the automotive company, and “China Mobile,” a major telecommunications player.
Trademark Squatting: Possible Implications
This situation highlights concerns regarding trademark squatting. This practice involves registering a trademark with the intent to sell it later or exploit a brand’s fame. A well-known case involves Chinese businessman Zhan Baosheng, who successfully trademarked “Tesla” and related names in China before Tesla reached a settlement with him for an undisclosed amount.
DeepSeek’s Path Forward Amid Trademark Issues
Currently, DeepSeek’s options appear limited. According to U.S. law, the first user of a trademark typically retains the rights unless evidence of bad faith registration is established. “DeepSeek could explore a coexistence agreement by demonstrating that they operate in different AI sectors than Delson Group. However, the U.S. organization holds several advantages,” states Josh Gerben, an attorney and the founder of Gerben IP, a firm specializing in issues related to intellectual property.
- Delson Group filed first
- They confirm earlier usage—prior to DeepSeek’s operations which began in 2023
- Their operational website showcases ongoing AI-related initiatives, including training events
Furthermore, Gerben points out that Delson Group may claim “reverse confusion” due to DeepSeek’s swift expansion or could initiate legal actions to prevent DeepSeek from using its brand name in the U.S. He elaborates, stating, “DeepSeek may encounter significant trademark issues in the United States, particularly as Delson Group appears to have a solid case for trademark infringement.
Trademark Issues in the AI Industry: Relevant Examples
DeepSeek is not alone in its struggles with trademark issues within the AI space. For example, OpenAI faced challenges in trademarking “GPT” after the USPTO determined the term was too generic. Additionally, OpenAI recently engaged in a legal dispute with technologist and entrepreneur Guy Ravine over the rights to the name “Open AI.” Ravine contends that he proposed the concept as part of an “open source” AI vision around 2015, coinciding with OpenAI’s founding.
As these circumstances unfold, DeepSeek is navigating a complex web of intellectual property rights, potential trademark conflicts, and the challenges faced by rapidly growing companies in the AI industry.
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