a

Discover

Leverage AI to reveal, enhance, and protect trade secrets.

Manage

Everything you need to run a trade secret program.

Professional Services

Expert guidance to build a trade secret program and secure key IP assets.

FAQs

Answers to your common questions

Blog

Insights and updates on industry trends

Press

Media coverage featuring Tangibly

Podcast

The Reasonable Measures Podcast

Webinars

Presentations exploring strategic insights

Case Law Reviews

Significant trade secret cases

Knowledge Base

Release notes and other Tangibly guides

Case Study

Industry-specific applications

TS25

International Standards for Trade Secret Management

DeepSeek Data Security: Safeguarding Your Confidential Information

Tangibly DeepSeek
Last updated on: January 29, 2025

On this page

The Chinese DeepSeek R1 and Janus open-source models are certainly all the AI rage this week.  The R1 model was built for a cost of about 5% of what its competitors normally spend and promises lower price for AI adoption.

Let’s take a look at DeepSeek from a few different perspectives.

What happens to your data?

Like with any large language model, you have to be careful and mindful about what information you input.  Valuable confidential information and trade secrets should not be input into DeepSeek’s model.  The same goes for ChatGPT, Gemini, Claude, and all the rest of the LLMs.  DeepSeek has the added risk that your data lands squarely in China.

Terms of use

The DeepSeek terms of use has a lot of interesting content!

If you have any disputes with DeepSeek, their terms of use state that you have to first try to negotiate, and then you can file a lawsuit against them with a court having jurisdiction over the registered office of DeepSeek (currently in Hangzhou China).  Any disputes will be governed by China law.

Not many people talk (or even think!) about export control restrictions around AI usage, but the DeepSeek terms of use also address this.  The user is solely responsible for complying with all relevant export control and sanctions laws.  The DeepSeek services should not be used for any use prohibited by export control and sanctions laws, and the inputs should not contain anything requiring a license to release or export.  This is especially sensitive given that input data is being sent to DeepSeek servers in China.

Protecting an open-source model

Patenting an open-source model doesn’t make a lot of sense.  The technology is advancing at breakneck speed, and any model that you try to patent will likely be long since obsolete by the time the patent grants in 2-4 years.

Protecting the model’s technology as a trade secret is the only approach that makes sense.  The protection is created immediately, does not require any public disclosure, and has low marginal cost assuming that you have a trade secret management program in place already.

Protecting the model’s output is also well suited to trade secret protection.  Evolving case law suggests that for both patents and trademarks, a real human being is needed as the inventor / creator.  An AI cannot be either.  It is also unclear if the human entering the input can be considered the inventor, or are they merely presenting a problem for the AI to solve (just posing a problem like “find a cure for cancer” does not make someone an inventor for the cure found later).

Related Articles

Blog

Is AI the ultimate defensive publication author?

Defensive publication is a patent strategy that makes it difficult or impossible for competitors to patent on or near what a company is commercializing.  The basic idea...
Blog

Takeaways: AI is Eating Your Intellectual Property (IP)

Overview In the latest IAM Saturday Opinion, Tangibly’s Chris Buntel and Tim Londergan explore how artificial intelligence is transforming the foundation of...
Blog, Guest Author Series

The New Face of IP in the AI Age: Why Trade Secrets Matter More Than Ever for Tech [Part 1 of 2]

Imagine this: A consultant starts a competing company after taking your proprietary information while under a confidentiality agreement. You promptly file a trade...
Blog

There’s No Trade Secret Troll Hiding Under The Bridge

Imagine this: A consultant starts a competing company after taking your proprietary information while under a confidentiality agreement. You promptly file a trade...
Stealing Confidential Information is Not Necessarily Trade Secret Misappropriation
Blog, Guest Author Series

Stealing Confidential Information is Not Necessarily Trade Secret Misappropriation

Imagine this: A consultant starts a competing company after taking your proprietary information while under a confidentiality agreement. You promptly file a trade...
Blog

Caffeinated or Not, Intent Matters: The Real Cost of Trade Secret Theft

Federal DTSA and Massachusetts UTSA do not clearly define what “willful and malicious” means. Recent litigation in Massachusetts took great steps towards clarifying...
Blog

KPM Analytics Wins $10M Trade Secret Case: What It Means for Foodtech and IP Protection

A recent federal court ruling awarded over $10 million in damages to KPM Analytics, a scientific instrumentation company serving the food and agriculture sectors, in a...
TS25.org
Blog

Introducing Trade Secret 2025 (TS25): The Future of Trade Secret Management

Tangibly, the leading trade secret management platform, proudly announces the launch of Trade Secret 2025 (TS25)—a cutting-edge digital resource designed to...
KPM Analytics v. Blue Sun Scientific
Blog

Palantir is Suing a Y Combinator Startup Over Trade Secrets

Palantir has filed a trade secret lawsuit against Guardian AI, a healthcare-focused AI startup launched by two of its former employees, in what is shaping up to be one...
Blog

Rippling v. Deel: Outsource your HR, but not your trade secrets.

Rippling sued their arch-competitor Deel in the Northern District Court of California on March 17, 2025. Rippling claims that Deel used a “mole” within Rippling to...