DeepSeek’s U.S. Trademark Battle: A Lesson in Brand Protection

DeepSeek, a Chinese AI company, has recently been in the news for many reasons.  Now, DeepSeek is facing a trademark challenge in the U.S., highlighting a crucial lesson for businesses – securing intellectual property rights early is key to protecting a brand nationwide. The DeepSeek trademark dispute also underscores a critical limitation of common law trademark rights, particularly in the digital age, where brands quickly extend beyond their original geographic markets.  

• The Trademark Dispute

DeepSeek recently attempted to trademark its AI tools in the U.S., only to discover that Delaware-based Delson Group Inc. had applied for the same name just 36 hours earlier. Delson claims it has been using the “DeepSeek” mark since 2020, while DeepSeek asserts first use in 2023.

According to records from the U.S. Patent and Trademark Office (USPTO), Delson has a history of filing trademark applications for marks associated with major Chinese companies, including GEELY (the Chinese car manufacturer) and CHINA MOBILE (the Hong Kong-based telecommunications provider). This could suggest a pattern of trademark squatting—where a party registers a mark with the intent to sell it later. However, in this case, Delson operates a live website showcasing AI-related training events, which may support its claim to legitimate use. Since U.S. trademark law generally prioritizes the first entity to use a mark in commerce, Delson’s earlier filing and claimed use may put it in a stronger legal position than DeepSeek.

• Key Takeaways for Businesses

This case underscores why businesses should take a proactive approach to trademark protection.

• Filing Early Establishes Nationwide Rights—Common Law Rights Are Not Enough – In the U.S., trademark rights are typically based on use in commerce, but there are significant limits to relying solely on common law rights. As I discussed in The Limits of Common Law Trademark Rights on the Internet, common law rights are restricted to the specific geographic area where a business has established its reputation. This means that without federal registration, a company may not be able to stop others from using its name in different regions—particularly in online marketplaces where geographic boundaries are blurred. Filing a federal trademark application with the USPTO grants nationwide priority, preventing disputes like DeepSeek’s before they arise.

• Beware of Trademark Squatting – Some entities strategically file trademarks for well-known or emerging brand names, hoping to profit from a later dispute. Businesses should conduct trademark searches and register their marks as early as possible to prevent conflicts. Without a federal registration, even a business with legitimate prior use could face challenges proving ownership—especially when dealing with opportunistic filers.

• Protect Your Brand Before Launching – International companies entering the U.S. market should file for trademark protection before publicly announcing a brand. Without a U.S. trademark registration, even well-established brands can face costly legal hurdles. As the internet expands brand visibility beyond local markets, businesses should not assume that their common law rights will be enforceable everywhere.

• Final Thoughts

DeepSeek’s trademark troubles serve as a cautionary tale for businesses expanding into new markets. Filing for trademark protection early not only prevents disputes but also establishes nationwide rights, giving businesses stronger legal footing. More importantly, it protects brands in the digital age, where common law rights often fall short.

In an increasingly competitive landscape, safeguarding intellectual property should be a top priority. If you want to secure your brand’s trademark before encountering similar challenges, contact us today to ensure your rights are protected from the start. Click HERE to learn more about Derek Fahey, Esq., the author of this article.