Trademark lawyer answers: Why are AI companies rushing to trademark their names and algorithms?

OpenAI, the company behind ChatGPT, has been leading the charge in AI-related trademarks. By early 2025, OpenAI had already filed 28 trademark applications, covering everything from “GPT” to potential new AI-powered products. While some of these applications are still waiting for approval, OpenAI is clearly working hard to protect its brand and prevent others from using similar names.

Not all trademark efforts have been smooth, though. OpenAI faced challenges when trying to trademark “GPT,” as the U.S. Patent and Trademark Office initially rejected it on the grounds that the term was too generic.

Google, too, has been busy securing trademarks for its AI products. However, its journey hasn’t been without bumps. The company has run into a major dispute surrounding the name “Gemini.” Google’s Gemini AI system shares its name with a company called Gemini Data, which had already trademarked the name back in 2013. 

Google isn't the only company that has faced trademark disputes in the AI space. Perplexity AI, for instance, is currently involved in its own trademark dispute. The company, which is building AI-powered search products, filed for a trademark for the name "Perplexity" in February 2024, as part of its efforts to establish a strong brand identity. However, it now finds itself in a legal battle with Perplexity Solved Solutions, a Texas-based firm that has held the trademark for "Perplexity" since 2022. Perplexity Solved Solutions, which offers workplace collaboration software, claims that Perplexity AI’s use of the name infringes on its existing trademark rights, sparking a lawsuit.

Trademarks are becoming an essential tool for companies of any size, and here’s why: they help protect brand identity and make it stand out in a crowded market. When a company like OpenAI or Google develops a popular product, they want to make sure that no one else can use the same name or a confusingly similar one. Trademarks give them the exclusive right to use specific names and logos, preventing competitors from taking advantage of their hard work and reputation.

This brand protection is key to a sustainable business model. If someone tries to use a name that’s already trademarked, the company with the trademark can take legal action to stop them. This is important in the AI industry, where new products and names are popping up constantly. Without trademarks, AI companies could lose the name their product became famous for and therefore all the credibility and trust that came with it. 

While trademarks offer many benefits, AI companies face numerous challenges when trying to secure them. One major issue is that many AI-related terms, such as “GPT” or “LLM” are widely used across the industry. 

The U.S. Patent and Trademark Office (USPTO) initially rejected OpenAI’s attempt to trademark “GPT” because it was considered too generic. In order to avoid these issues, companies must demonstrate that their terms have become uniquely associated with their brand rather than serving as industry-wide descriptors.

Another challenge is legal conflicts arising from pre-existing trademarks. The dispute between Google and Gemini Data highlights how AI companies can run into trouble when selecting names that might already be registered. When companies find themselves in such conflicts, they may face expensive lawsuits, rebranding efforts, or settlement negotiations that can drain resources and delay product rollouts. Given how quickly AI companies move, securing trademarks early is essential, but even then, conflicts may arise as new competitors enter the space.

The AI industry is still in its early stages, but companies are already treating trademarks as essential tools for protecting their brands and businesses. Companies such as OpenAI, Google, and Microsoft are all actively securing trademarks to maintain their market positions, prevent unauthorized use, and avoid legal battles.

As AI continues to grow, the competition for brand names will only become more intense. For companies developing AI technologies, trademarks are no longer just an afterthought—they’re a critical part of the business strategy.

AI companies are rapidly filing trademarks to secure exclusive rights to their product names, protect their brand identity, and prevent competitors from capitalizing on their success. As AI tools like ChatGPT and Gemini gain popularity, trademark protection ensures that others can’t create copycat products with confusingly similar names. Without trademark registration, even leading companies risk losing control over how their brand is used or misused in the market. As shown in the case of OpenAI’s 28+ filings, trademarks are a key part of brand strategy in the competitive AI landscape.

Trademarks must be distinctive to qualify for protection, which is why terms like “GPT” can be difficult to trademark. The U.S. Patent and Trademark Office initially rejected OpenAI’s attempt to trademark “GPT” on the grounds that it was too generic—a common issue for AI-related terminology used widely across the industry. To succeed, a company must prove that the term has become uniquely associated with their product or brand, not just the industry as a whole. Legal experts at firms like Trama help evaluate these cases to determine whether a term is viable for registration.

Startups that delay trademark registration are at higher risk of legal disputes, forced rebrands, or even losing access to their product names. As seen in the case of Perplexity AI, failing to secure a unique name can lead to expensive lawsuits with companies that already hold similar trademarks. These legal battles can disrupt product rollouts and damage brand credibility. Early trademark registration is one of the most effective ways for AI companies to secure long-term market stability. You can start with Trama’s free lawyer’s check to assess your mark’s registrability before making major brand decisions.