Chinese artificial intelligence company DeepSeek is facing a new challenge in the United States, where it has been accused of intellectual property theft, faced privacy inquiries in Europe, and was recently targeted by a massive cyberattack. The company's latest headache stems from a trademark conflict with a Delaware-based firm, Delson Group Inc., which has filed for the "DeepSeek" trademark, potentially threatening the Chinese company's brand identity in the US.

The controversy began when DeepSeek filed an application with the US Patent and Trademark Office (USPTO) seeking to trademark its AI chatbot apps, products, and tools. However, it was discovered that Delson Group had filed for the same trademark 36 hours earlier, claiming to have been selling DeepSeek-branded AI products since early 2020. The Delaware-based company lists its address as a home in Cupertino, California, and its CEO and founder as Willie Lu, a "semi-retired" consulting professor at Stanford and an FCC advisor.

Lu's background is notable, as he graduated from the same university as DeepSeek founder Liang Wenfeng, Zhejiang University. Lu's LinkedIn profile highlights his expertise in the wireless industry, and he hosts a "DeepSeek" educational course in Las Vegas on "AI Super-Intelligence," which starts at $800 a ticket. The website linked to Delson Group's trademark filing claims that Lu has "about 30 years' expertise in ICT [information and communications technology] and AI fields."

When reached for comment, Lu told TechCrunch that he would be willing to "meet and talk" in Palo Alto or Saratoga, but did not respond to a follow-up request. Josh Gerben, an attorney and the founder of Gerben IP, a law practice specializing in IP issues, has labeled Delson Group a "trademark squatter," suggesting that Lu may be attempting to profit from DeepSeek's brand success.

A search of the USPTO's Trademark Trial and Appeal Board Inquiry System reveals that Delson Group has been involved in over two dozen disputes with organizations including the GSMA, Tencent, and TracFone Wireless, further supporting Gerben's assertion. Under US law, the first user of a trademark is typically considered the rightful owner, unless it can be proven that the trademark was registered in bad faith.

DeepSeek's options are limited, and Gerben notes that the company may need to seek a coexistence agreement with Delson Group or risk being blocked from using its brand name in the US. Alternatively, Delson Group could claim "reverse confusion" due to DeepSeek's rapid rise to prominence, or sue for trademark infringement. This is not the first time an AI company has faced trademark issues, as OpenAI recently failed to trademark "GPT" and is currently fighting technologist and entrepreneur Guy Ravine for the right to use "Open AI."

The implications of this trademark conflict are significant, as DeepSeek's brand identity and reputation in the US hang in the balance. The company's existing controversies, including IP theft allegations, privacy inquiries, and a massive cyberattack, have already damaged its reputation. This latest challenge could further erode trust in the company and its ability to operate in the US market.

As the situation unfolds, it remains to be seen how DeepSeek will respond to this trademark conflict and whether it will be able to protect its brand identity in the US. One thing is certain, however: the company's ability to navigate these challenges will have a significant impact on its future success in the competitive AI market.