DeepSeek Doesn't Own Name Trademark In US: Could This Be The Next Battle Alongside IP Theft Allegations?

DeepSeek took the investing world by storm over the past week with technology stocks facing a major selloff on Monday as the company's AI technology showed strong results.

The Chinese AI company now faces several potential battles and a new one concerning the trademark of the company's name could be next on the list.

What Happened: Since launching in the U.S., DeepSeek has been targeted by the White House as a potential national security risk.

The company has also been accused of IP theft by rival AI company OpenAI.

While DeepSeek's future in the U.S. faces scrutiny, a new issue is brewing with a report that the company does not own the trademark for its company name.

While DeepSeek quickly gained name recognition in the last week and saw its app shoot to the top of the downloads chart, the startup could be forced to change its name in the future.

The trademark for "DeepSeek" is owned by a Delaware-based company named Delson Group, as reported by TechCrunch.

The trademark by Delson Group was filed days before DeepSeek put in their request on Tuesday with the U.S. Patent and Trademark Office.

Delson Group claims in their trademark filing that they have sold AI products under the DeepSeek name since early 2020. The company's CEO and founder Willie Lu also hosts educational courses on "AI Super-Intelligence" using the DeepSeek name according to the filing.

Read Also: EXCLUSIVE: Will DeepSeek Hurt Magnificent 7 Valuations? 57% Say This

Why It's Important: Trademark law in the U.S. often favors the first user of a trademark.

"While DeepSeek could potentially seek a coexistence agreement if they can prove they operate in different aspects of AI than Delson Group, the U.S. company has several advantages," lawyer Josh Gerben told TechCrunch. "They filed first, they claim earlier use – 2020 versus DeepSeek's claimed 2023 start date – they have a live website showing AI-related activities, including training events."

Delson Group could potentially sue to block DeepSeek from using their brand name in the U.S. due to the trademark filing, Gerben added.

The report said that a search for Delson Group uncovered the company has a history of trademark squatting, mainly with securing trademarks for the names of Chinese companies in the U.S.

Examples include trademarks for Tencent, Geely and China Mobile. Delson Group has around 28 current trademarks registered according to the report.

While certain cases of trademark squatting can be proven illegal and end trademark claims, the fact that Delson Group has been using the DeepSeek name and establishing an AI presence for the brand over the years could create a battle for the name that many Americans became more familiar with on Monday.

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