DeepSeek Faces Trademark Dispute in the U.S.: Analysis and Reflection on the International Trademark Challenges for Chinese Companies

DeepSeek has emerged as a prominent Chinese AI unicorn in recent years, earning widespread industry attention for its advanced large-model technology and innovative products. Its AI chatbot and intelligent search engine, often dubbed the "Chinese version of ChatGPT," have quickly captured significant user interest.

According to a search conducted on the USPTO, Delson Group Inc. filed a trademark application for DEEPSEEK under Class 9.42 just one day before Hangzhou DeepSeek Artificial Intelligence Co., Ltd. Both trademarks are currently under review, setting the stage for an impending trademark dispute.

Below is a screenshot of the USPTO search interface for the "DEEPSEEK" trademark:

Delson Group: The Identity and Controversy Behind Trademark Speculation

Headquartered in Delaware, USA, Delson Group is led by Willie Lu, a CEO of Chinese background and a self-proclaimed semi-retired Stanford professor and FCC advisor. Historically active in the wireless communications sector, the company recently ventured into the AI field, offering courses such as the "DeepSeek AI Super Intelligence" training program priced at $800.

However, many in the industry perceive Delson Group as more of a "trademark speculator" than a genuine AI company. Its trademark filings reveal a pattern of registering trademarks for well-known Chinese companies such as Geely and China Mobile, allegedly seeking profit through trademark hoarding—a practice commonly seen in both Chinese and American trademark histories.

Why Is There a Trademark Dispute?

01. Strategic Imbalance Between Technology and Brand Building

DeepSeek's situation highlights a common strategic oversight in tech companies: relying heavily on technological superiority while neglecting brand protection. Despite its founding team’s prestigious academic backgrounds and significant investment in algorithm innovation, the company failed to establish an international intellectual property framework. This "technology-first" mindset left it vulnerable to trademark issues, exposing a blind spot in Chinese tech leaders' understanding of commercial rules.

02. Legal Differences Between Regions

The "first-to-use" principle under U.S. trademark law contrasts sharply with China's "first-to-file" system. Speculators exploit this difference by quickly registering Chinese brand trademarks that have yet to enter the U.S. market, creating legal traps. In 2024, 73% of trademark disputes involving Chinese and American tech companies stemmed from such legal differences. DeepSeek’s failure to secure global trademark registrations highlights an underestimation of international business complexities.

03. Industrialization of Trademark Speculation

Trademark speculation has become a structured industry. Certain U.S. law firms closely track Chinese tech companies' trademark activities and collaborate with speculators in "patent troll"-like operations. Data shows that 42% of DeepSeek-related domain names were registered between January 26 and 28, indicating bulk operations by professional teams. Speculators target the high-growth potential of the AI sector, aiming to profit through trademark pledges and licensing fees.

Legal Risks and Countermeasures for DeepSeek

Under U.S. trademark law, the "first user" of a trademark is generally recognized as the legal owner, rather than the "first applicant." Therefore, Hangzhou DeepSeek must provide evidence that its trademark was already in use in the U.S. before Delson Group's application date. Otherwise, it may lose the right to use the brand in the U.S. market and potentially face legal action from Delson Group, which could severely impact its overseas expansion plans.

Currently, DeepSeek may consider the following countermeasures:

1. Collect evidence demonstrating that Hangzhou DeepSeek used the "DeepSeek" trademark in the U.S. before the opposing application date.
2. Gather evidence proving that Delson is a "trademark speculator" to establish its malicious intent in the trademark filing.
3. Negotiate a trademark coexistence agreement with Delson Group to allow the use of the same trademark in different fields.
4. Consider rebranding if litigation costs are too high to mitigate potential legal risks.

Lessons for Chinese Companies Going Global

01. Plan Ahead for International Trademark Registration

Companies should plan and register trademarks early when expanding internationally. Registering trademarks in key markets like the U.S. and Europe ensures legal brand usage rights and prevents trademark disputes or infringement risks.

02. Understand and Adapt to Legal Differences

Trademark laws and IP systems vary significantly across countries. Chinese companies must familiarize themselves with trademark registration processes and legal frameworks in target markets, particularly the differences between "first-to-use" and "first-to-file" principles.

03. Balance Brand Protection and Technological Innovation

While focusing on technological advancements, companies must also prioritize brand building. In overseas markets, brand protection and technological innovation are equally important. R&D and brand strategies should proceed in tandem to avoid legal vulnerabilities.

04. Prepare for Legal Disputes

Trademark disputes are inevitable in international markets. Companies should establish professional international legal teams and collaborate with external lawyers to swiftly address trademark disputes and IP infringements.

05. Flexible Strategy Adjustment to Mitigate Risks

In cases of trademark disputes or infringement litigation, companies should consider flexible responses, such as trademark coexistence negotiations or rebranding to minimize legal risks and protect market competitiveness.