Penguin Apparel Brand Targets Crypto IP Pudgy Penguins in Trademark Infringement Lawsuit

PEI Licensing, the company behind established brands like Original Penguin, has filed a lawsuit against the crypto brand Pudgy Penguins for alleged trademark infringement. The suit, lodged in the District Court for the Southern District of Florida, claims that Pudgy Penguins' use and attempted registration of penguin-related trademarks are misleading consumers and infringing on PEI Licensing's long-standing rights.

Allegations of Infringement

PEI Licensing, which has utilized a penguin design on apparel since 1956 and a penguin word mark since 1967, asserts that Pudgy Penguins' actions cause damage to its goodwill and business reputation. The firm argues that Pudgy Penguins' unauthorized use of similar marks is likely to confuse the public into believing there is an affiliation between the two entities, when none exists. PEI Licensing provided examples of perceived similarities between their products and those offered by Pudgy Penguins to support their claims.

Legal Actions and History

The lawsuit highlights Pudgy Penguins' applications to register trademarks for phrases such as “I am my penguin and my penguin is me,” and “Pengu Nation,” which PEI Licensing contends are for identical or nearly identical goods and services to those for which PEI uses its own penguin trademarks. Despite PEI Licensing sending a cease-and-desist letter on October 20, 2023, and filing opposition notices with the United States Trademark and Patent Office in 2024, Pudgy Penguins has reportedly continued to use the disputed marks. PEI Licensing alleges these actions are willful and intentional, aimed at capitalizing on PEI's established reputation.

Requested Relief

PEI Licensing is seeking monetary relief, including all profits from Pudgy Penguins' sales of infringing items. They also request that Pudgy Penguins' trademark applications be rejected and that any products bearing confusingly similar marks be seized and destroyed. Representatives for Pudgy Penguins and PEI Licensing's attorneys did not immediately comment on the lawsuit.

Pudgy Penguins' Growth

Since its inception as an Ethereum NFT collection in 2021, Pudgy Penguins has emerged as a significant brand in the crypto space. The brand has expanded to include a Solana-based culture coin, PENGU, and has successfully launched a physical toy line in major retailers like Walmart and Target, achieving over $10 million in sales within its first year.