Pudgy Penguins Embroiled in Trademark Dispute as Original Penguin Files Infringement Lawsuit

PEI Licensing, part of the Original Penguin apparel brand, recently filed a lawsuit in Florida federal court against NFT project Pudgy Penguins, accusing it of using penguin logos on clothing products that are highly similar to its registered trademarks, constituting trademark infringement, dilution, and unfair competition. The lawsuit states that PEI has been using penguin designs on clothing since 1956 and began using the "PENGUIN" word mark in 1967, possessing long-term and widely used brand assets. In October 2023, PEI sent a cease and desist letter to Pudgy Penguins, demanding that it immediately stop using the relevant logos and withdraw several "PENGUIN" related trademark applications submitted to the United States Patent and Trademark Office (USPTO). PEI emphasizes in the complaint that Pudgy Penguins' product design and brand naming are likely to cause consumer confusion, suspected of improperly using the market reputation of its well-known trademark. The lawsuit seeks to have the USPTO reject Pudgy Penguins' trademark applications, destroy the allegedly infringing goods, and confiscate its related sales profits.

An excerpt of PEI’s complaint comparing its Original Penguin brand to Pudgy Penguins’ merchandise. Source: CourtListener In response, Pudgy Penguins' Chief Legal Officer Jennifer McGlone said that the company was surprised by the lawsuit because the two parties were actively seeking solutions through private communication. She emphasized that Pudgy Penguins' penguin visual design is significantly different from Original Penguin, and the target consumer groups and market positioning are also completely different. Currently, Pudgy Penguins has obtained several trademark approvals from the USPTO and is confident of ultimately winning the case.

Source: Pudgy Penguins On social media, the official Pudgy Penguins account also released a humorous meme, visually emphasizing that there is no substantial connection between the two brands, implying that the outside world has misunderstood its brand uniqueness. This incident has once again sparked industry attention to the intellectual property boundaries between NFT projects and traditional brands.