Pudgy Penguins accused of trademark infringement by classic penguin costume brand

BlockBeats News, March 6 — The parent company of the classic penguin apparel brand Original Penguin/Penguin, PEI Licensing, which originated in 1955, has officially filed a lawsuit against Pudgy Penguins Inc., accusing it of trademark infringement and brand dilution. PEI claims that Pudgy Penguins uses names such as "Pudgy Penguins," "Pengu Nation," and "Forever Pudgy Penguins," as well as penguin-related logos on retail products including clothing, hats, hoodies, and plush toys, which could easily cause consumer confusion and lead them to mistakenly believe the two are related. Although PEI issued a cease and desist letter as early as October 2023, Pudgy Penguins has continued to produce and sell the related merchandise.

Pudgy Penguins was originally an Ethereum NFT project launched in 2021, which later successfully pivoted to physical commercialization. Since 2023, it has sold plush toys at major retailers such as Walmart and Target, with sales exceeding one million units in a short period and expanding into the apparel category. PEI is seeking to recover all infringing profits, its own losses, and other damages from Pudgy Penguins. As of now, Pudgy Penguins has not publicly responded to the lawsuit.