AI Legal Tech Boom Sparks Trademark Wars in UK Law Sector
The rapid expansion of artificial intelligence within the legal technology sector is creating a new battleground for intellectual property rights across the United Kingdom. As AI-focused businesses proliferate to meet soaring demand, competition for distinctive and memorable brand names has intensified dramatically, leading to a sharp increase in trademark conflicts between established law firms and emerging tech startups.
Surge in Legal Tech Entrepreneurship
According to comprehensive data from LawtechUK, the number of UK-founded lawtech companies tracked by the organisation climbed significantly from 270 to 295 during just the first six months of 2025. This remarkable growth reflects increased funding availability for innovative technology startups entering the legal services space. The field has become increasingly crowded, with near-record numbers of trademark applications being submitted to the UK Intellectual Property Office.
Of the 177,771 trademark applications received by the UKIPO, industry analysts estimate that approximately one in seven contain references to 'artificial intelligence', 'machine learning', or 'generative AI' within their listed goods and services. This statistic underscores the overwhelming focus on AI technologies within current business development strategies across multiple sectors, with legal services proving particularly fertile ground for innovation.
Trademark Disputes on the Rise
John Coldham, head of brands and designs at prominent law firm Gowling WLG, warns that "we are likely to see a rise in trademark disputes as more AI‑focused legal businesses and technology providers enter the market." He explains that while artificial intelligence accelerates brand creation processes, it often lacks the "common sense" required to avoid infringing upon existing trademarks, frequently resulting in inadvertent mimicry of established brands.
"As more AI‑native firms launch, often with tech‑sounding or algorithm‑inspired names, we can expect greater competition over brand space and, inevitably, more conflict where names or visual identities edge too close to existing rights," Coldham elaborated. This prediction reflects growing concerns within the legal industry about protecting intellectual property in an increasingly digital marketplace.
The Wordsmith Case Study
A recent dispute between Wordsmith Law and Wordsmith AI exemplifies the complexities emerging in this new landscape. Wordsmith Law, which successfully secured a trademark for WORDSMITH back in 2018, recently initiated legal action against Scotland-based Wordsmith AI, a conflict first identified by Oliver Fairhurst, partner at Lewis Silkin.
The case presents multiple layers of complexity. Wordsmith AI, founded in 2023 by entrepreneurs Harsha Mulchandani and Shreyas Nair, achieved a valuation of $100 million by June of last year. Meanwhile, Wordsmith LLP operates as a boutique corporate and commercial law firm based in London's financial district. The situation became further complicated when Wordsmith AI attempted to register its brand officially through a UK trademark application in 2025, only to be blocked by another applicant.
In response, Wordsmith LLP sought to file a new trademark application for 'WORDSMITH' specifically covering AI software, Software as a Service, and Platform as a Service offerings tailored to the legal sector.
Shifting Branding Strategies
Roger Lush, partner at intellectual property specialists Carpmaels and Ransford, explained that "The registered trademark for 'WORDSMITH' is likely to be a core part of Wordsmith Law's complaint." He added that "This reflects the traditional focus of law firm branding being on the firm's name. As law firms start to develop and brand their own software tools, we could see an increase in brand activity in the legal sector beyond the names of firms."
This evolution in branding approaches coincides with law firms increasingly recognising the strategic importance of distinctive branding as competition within the legal sector intensifies. According to reports from Eyes on the Law last May, numerous firms have begun understanding the value of associating their names with iconic projects and properties.
For instance, Liverpool-headquartered Hill Dickinson recently secured naming rights for Everton Football Club's new stadium at Bramley-Moore Dock, demonstrating how traditional law firms are expanding their branding beyond conventional legal services.
Strategic Brand Development
John Coldham emphasised that "A strong, clearly articulated brand helps clients understand what a firm stands for, builds trust through consistent experiences, and creates the emotional connection that increasingly shapes how businesses choose their advisers." This perspective highlights how branding has evolved from mere identification to becoming a crucial element of client relationship building and market differentiation.
However, with AI tools flooding the marketplace and frequently challenging existing trademarks, businesses must maintain vigilant oversight of their trademark portfolios. Roger Lush advised that "for law firms, that will probably mean thinking more broadly than just 'legal services'" when considering trademark protection strategies.
As artificial intelligence continues transforming the legal landscape, the intersection of technology, branding, and intellectual property law promises to remain a dynamic and contentious arena. Law firms and legal tech companies alike must navigate these complexities carefully to establish distinctive identities while avoiding costly trademark disputes in an increasingly competitive marketplace.
