Chinese AI company DeepSeek is facing yet another legal challenge, this time over a trade mark conflict in the U.S. The company recently sought to trade mark its AI tools but found that a Delaware-based firm, Delson Group Inc., (Delson) had applied for the same name 36 hours earlier. Delson claims to have been using the "DeepSeek" mark since 2020.
According to the USPTO's records, Delson has filed a number of trade mark applications for marks belonging to major Chinese companies, including GEELY (the Chinese car company), and CHINA MOBILE (the Hong Kong-based telecommunications provider). This may indicate a pattern of 'trade mark squatting'. However, in this instance Delson does appear to have a live website that shows AI-related training events, which could support their claim. As it stands, they filed first and claim earlier use than DeepSeek (who claim to have first use in 2023).
This situation highlights some key lessons for businesses, especially those navigating the complex world of intellectual property:
- Trade mark squatting risks: This happens more frequently than most realise. Tesla settled a trade mark infringement claim in China in order to resolve a dispute with a Chinese businessman who registered the TESLA trade mark and "T" logo in China.
- Proactive IP protection: This situation underscores the importance of securing intellectual property rights well in advance to avoid costly disputes.
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