Chinese AI company DeepSeek is again embroiled in trademark dispute

Recently, Chinese AI company DeepSeek encountered a trademark dispute in the United States because the trademark it applied for conflicted with the trademark of an American company Delson Group Inc. This incident once again highlighted the risk of trademark squatting faced by enterprises in the process of globalization.

1. Case Background

• DeepSeek recently attempted to apply for a trademark for its AI tool, but discovered that Delson Group Inc. in Delaware, USA, had already filed a trademark application for the same name 36 hours in advance. Delson claims to have used the "DeepSeek" trademark since 2020 and showed a website of AI-related training activities to support its claim. Although Delson has previously applied for trademarks of well-known Chinese companies (such as Geely Automobile and China Mobile) many times, which may be suspected of "trademark squatting", its existing website provides some basis for its claim.
• This case shows that trademark squatting is a common problem worldwide, especially when companies enter new markets. Yezhima recommends that companies conduct a comprehensive trademark layout as early as possible before expanding their business to avoid similar disputes.

2. Risks and lessons of trademark squatting

• Frequent trademark squatting: Trademark squatting is more common than many people think. For example, Tesla once reached a settlement in China with a Chinese businessman who squatted on the "TESLA" trademark.
• High legal costs: Trademark disputes are often time-consuming and labor-intensive, and may have a serious impact on a company's brand image and market expansion.
• First-mover advantage: In many countries, trademark applications follow the “first-to-file” principle, meaning that the party that files the application first generally enjoys priority.

3. How to deal with the risk of trademark squatting?

• Plan ahead: Before entering a new market, conduct trademark searches and applications as early as possible to ensure the exclusivity of your brand name and logo.
• Monitor the market: Regularly monitor trademark trends in the target market to promptly identify potential preemptive registrations.
• Legal support: Once you find that your trademark has been preemptively registered, immediately seek professional legal support and take legal action to protect your rights.
• Trademark protection is not only a legal issue, but also an important part of corporate strategy. YZM provides one-stop services from trademark search, application to dispute resolution, helping you protect your brand value worldwide.

If you have any questions about trademark protection, please contact us. Click here to learn more, or scan the QR code below to consult our professional consultants.