Pudgy Penguins sued by the parent company of Original Penguin: accused of NFT brand infringement and demanded product destruction

On March 6, it was reported that the well-known NFT project Pudgy Penguins is facing a trademark dispute. The parent company of the clothing brand Original Penguin, PEI Licensing, has filed a lawsuit in the U.S. Federal Court in Florida, accusing Pudgy Penguins of using a logo in clothing and related products that closely resembles its penguin trademark, allegedly infringing on trademark rights, diluting brand recognition, and constituting unfair competition.

According to the lawsuit documents, PEI Licensing states that Pudgy Penguins uses the words “PENGUIN” and a penguin graphic in its clothing products and related services, and has attempted to register multiple related trademarks. These marks are considered to be “extremely similar” to the long-used trademark of Original Penguin, which could cause consumer confusion.

PEI states that its “Penguin” word mark has been in use since 1967, and its classic penguin graphic has been in use since 1956. Both have been federally registered in the United States and are well known in the clothing industry. The company claims these marks are core assets of its brand.

The lawsuit also reveals that PEI Licensing issued a cease-and-desist notice to Pudgy Penguins as early as October 2023, demanding that they stop using the relevant penguin logo and withdraw their trademark application filed with the United States Patent and Trademark Office. PEI believes that Pudgy Penguins’ actions “misappropriate the company’s important intellectual property” and could mislead consumers into thinking there is a commercial connection with Original Penguin.

In legal terms, PEI requests the court to order the U.S. Patent and Trademark Office to reject Pudgy Penguins’ trademark applications, and to prohibit further use of the infringing marks. Additionally, PEI asks the court to order the destruction of all products that could cause confusion with its trademarks and to award PEI the profits from the sale of such products.

Pudgy Penguins responded to the lawsuit with surprise. Legal director Jennifer McGlone stated that the parties had been communicating privately to resolve the issue, and the lawsuit was unexpected. She emphasized that the visual designs of the involved trademarks are clearly different and target entirely different audiences and market segments.

McGlone also noted that Pudgy Penguins has received approval for multiple trademark applications from the U.S. Patent and Trademark Office and is confident in the final outcome. Meanwhile, the official Pudgy Penguins social media account posted a meme image humorously addressing the controversy, implying that there is no similarity between their brand and Original Penguin.

As NFT brands gradually expand into clothing and consumer goods, legal disputes over trademark rights and intellectual property are increasing. The outcome of this case could become an important example of how Web3 brands and traditional consumer brands navigate trademark protection.