DeepSeek Facing Issues with Trademark Registration in the US

A trademark is a legally protected name, logo, symbol, or visual representation associated with a certain brand or company. Trademarks are registered to ensure commercial exclusivity of a given brand and legal protection if any intellectual property disputes arise.

Many companies register trademarks to safeguard their brand identity, build consumer trust, and avoid costly legal conflicts. But despite these benefits, not all businesses prioritize early registration—especially when operating across multiple jurisdictions. This brings us to the case of DeepSeek.

To understand why DeepSeek didn't already own a trademark prior to this case, we need to understand that trademarks are territorial (or jurisdiction-based). This means that a trademark filed and registered in the US is going to have little protection (if any) in European countries, for example. Similarly, while DeepSeek does not have a registered US trademark, the company did file trademark applications in its native country—China.

Presumably, DeepSeek didn't prioritize the US jurisdiction, as the market it focused on the most was China. Even so, DeepSeek has faced issues with unauthorized entities attempting to register trademarks using its name in China as well. The China National Intellectual Property Administration (CNIPA) rejected 63 such applications, citing intentions to exploit DeepSeek's growing reputation for improper gains.

Trademark squatting refers to the practice of registering a trademark without any genuine intention to use it, often with the aim of holding it for ransom. These cases are especially common in countries where “first-to-file” systems are used—meaning whoever files a trademark first gets the rights, regardless of actual commercial use.

The squatter may attempt to block the legitimate company from entering the market, sell counterfeit goods under the trademarked name, or demand a buyout or licensing fee from the rightful brand owner. This practice forces legitimate businesses into costly legal battles, settlement negotiations, or rebranding efforts—especially if the squatter’s claim is granted before the real brand has legal rights in that jurisdiction.

In this case, Delson Group Inc., the company behind the U.S. DeepSeek trademark filing, claims to have used the name in commerce since 2020. The application listed a Cupertino address and named a person named Willie Lu as CEO and founder. Despite these claims, Delson has a suspicious history. It has been involved in more than two dozen disputes at the USPTO’s Trademark Trial and Appeal Board, including cases against Tencent, TracFone, and GSMA.

Moreover, Delson has already secured more than 20 U.S. trademarks tied to well-known Chinese brands like China Mobile and Geely. This pattern points strongly toward trademark squatting behavior.

To resolve its trademark issue in the U.S., DeepSeek can challenge Delson Group’s application by filing an opposition or a petition to cancel the registration with the USPTO. This would involve showing that DeepSeek used the name in U.S. commerce before Delson’s filing or that Delson acted in bad faith. If DeepSeek can demonstrate it has prior common law rights or is internationally well-known, it may have a strong case under U.S. trademark law.

Alternatively, DeepSeek could pursue a business solution, such as negotiating a coexistence agreement or purchasing the trademark from Delson. If legal and negotiation efforts fail or drag on, DeepSeek may have to rebrand in the U.S. market to avoid infringement risks. The best outcome depends on DeepSeek’s ability to prove prior use or brand recognition and its willingness to invest in legal or settlement costs.

The DeepSeek case highlights why early trademark registration is essential for growing businesses, especially in international markets. In today’s global and highly digital economy, where market entry can happen rapidly and unintentionally across borders, failing to register a trademark in key jurisdictions can leave a brand exposed.

This situation also highlights the ongoing issue of trademark squatting—a practice that continues to exploit loopholes in intellectual property systems. For companies operating globally, staying one step ahead through proactive IP planning is no longer optional—it’s a must.

If you're unsure whether your brand is at risk, start with a free lawyer’s check to determine if your brand is eligible for trademark protection in your target markets.

Trademark squatting occurs when someone registers a trademark without intending to use it, often targeting known brand names to block entry into a market or demand payment later. It can delay business expansion, trigger expensive legal battles, and damage a company’s reputation.

Yes. If DeepSeek had registered its trademark in the U.S. earlier, it would have had clear legal rights and avoided this conflict. Proactively registering trademarks in key markets is a critical strategy for international brand protection.

DeepSeek can file an opposition or petition for cancellation through the USPTO, arguing that Delson acted in bad faith or that DeepSeek has prior common law rights. Alternatively, it may try to settle or purchase the trademark rights—though that can be costly and controversial.