The company behind the long-running Original Penguin apparel brand has filed a trademark infringement lawsuit against the Web3 brand Pudgy Penguins, accusing the popular NFT project of using penguin-themed trademarks that could confuse consumers and dilute its decades-old brand identity.
The lawsuit was filed by PEI Licensing, a subsidiary of Perry Ellis International, in the U.S. District Court for the Southern District of Florida, marking one of the most prominent legal battles yet between a traditional fashion brand and a crypto-native intellectual property project.
Claims of Trademark Infringement
In the complaint, PEI Licensing alleges that Pudgy Penguins’ use of penguin-related branding and apparel marksinfringes on its federally registered “Penguin” trademarks, which the company says have been used in the apparel industry for decades.
The apparel brand says the crypto project’s merchandise — including clothing and headwear — uses marks that are “confusingly similar” to its own, potentially misleading consumers into believing the products are affiliated with the Original Penguin brand.
PEI noted that it has used the penguin design on apparel since at least 1956 and registered the “Penguin” word mark in 1967, giving it long-standing intellectual property rights in the category.
Dispute Over Apparel and Trademark Applications
The lawsuit focuses on Pudgy Penguins’ expansion into physical merchandise, including apparel and accessories. The NFT project has attempted to register several trademarks connected to its brand, including phrases like “Pengu Nation.”
According to the complaint, these trademark filings cover goods that overlap with products already sold by the Original Penguin brand. PEI argues that this overlap could damage its reputation and dilute the value of its trademarks.
PEI also claims it sent a cease-and-desist letter in October 2023, warning the crypto brand about potential infringement, but alleges that Pudgy Penguins continued to use the disputed marks in commerce.
What the Apparel Brand Is Seeking
The lawsuit asks the court to order several remedies if infringement is proven, including:
Blocking Pudgy Penguins from using similar penguin-related trademarks
Requiring the destruction of merchandise deemed confusingly similar
Rejecting the project’s trademark applications with the U.S. Patent and Trademark Office
Awarding financial damages and profits tied to the alleged infringement
Pudgy Penguins Responds
Representatives for Pudgy Penguins say they were surprised by the lawsuit and maintain that their branding is distinct and targeted at a different market than the traditional apparel brand. The company says it believes the claims lack merit and expects to defend its intellectual property rights in court.
Pudgy Penguins began as an Ethereum NFT collection launched in 2021, but has since evolved into a broader consumer brand with toys, merchandise, and digital products sold through major retailers and online platforms.
