The early bird gets the trademark: the consequences of late trademark registration

03.03.2025

• Case analysis
• Consequences of late registration
• Comments
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So, who owns the "DeepSeek" trademark — the Chinese company DeepSeek or the American company Delson Group?

The Chinese company, which recently launched the much-discussed DeepSeek AI, is now embroiled in a trademark dispute with the American company Delson Group Inc. Delson claims to have been selling artificial intelligence products under the "DeepSeek" brand since early 2020.

The core of the dispute is that in January 2025, Delson Group Inc. filed an application to register the "DeepSeek" trademark in the U.S.—just 36 hours before the Chinese company DeepSeek submitted a similar application.

Pavel Klementsov, head of brand protection at REVERA, analyzes this case and shares his recommendations.

Case analysis

On January 28, 2025, Hangzhou DeepSeek Artificial Intelligence Co., Ltd., the creators of DeepSeek AI, applied for the "DeepSeek" trademark registration with the United States Patent and Trademark Office (USPTO). However, after submitting their application, they discovered that an identical application for the "DeepSeek" trademark had already been submitted 36 hours earlier by Delson Group Inc. (Delson).

In its defense, Delson claims that it has been using the name "DeepSeek" since 2020 for artificial intelligence-related products and services, whereas DeepSeek AI only started operating under this brand in 2023.

However, it is worth noting that Delson owns more than 20 trademarks in the U.S. that mimic well-known Chinese brands, such as the name of the Chinese social network Renren and the Geely car brand. Additionally, Delson has previously been involved in disputes over trademark registrations, suggesting that this may not be an isolated case but rather part of the company’s modus operandi.

Consequences of late registration

Since Delson filed its application for the "DeepSeek" trademark first, it has priority in the registration process, which could lead to serious problems for DeepSeek AI. If DeepSeek AI's creators fail to challenge the registration and prove that Delson’s application was made in bad faith, they could face several negative consequences.

These include the denial of their own trademark registration, forcing them to either rebrand or obtain a license from Delson. Additionally, Delson could file a lawsuit against them for unauthorized use of the trademark. If the case goes to court, Delson may also seek damages. All of these unfavorable outcomes would not only result in significant financial losses and time-consuming legal battles (as trademark disputes in the U.S. can take a long time) but could also damage the company’s reputation if the case does not end in their favor.

Comments

In trademark registration cases, it is not uncommon for a rapidly growing brand to find that its name—or a similar one—has already been registered by another entity or that an identical application has been submitted.

To avoid such issues, companies must take care of their intellectual property protection early on, ensuring timely registrations and monitoring potential conflicts. Often, speed is the deciding factor. As the saying goes, "The early bird gets the trademark." However, if a dispute has already arisen, a brand owner may attempt to challenge the registration of the conflicting trademark by proving bad faith or negotiating a settlement with the other party. However, settling the matter later can be much more costly than handling the registration properly from the start.

Authors: Kristina Voynilovich, Pavel Klementsov

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