Original Penguin sues Pudgy Penguins over apparel trademark dispute

A legal dispute between a traditional clothing brand and a Web3 company has reached a federal court in Florida.

PEI Licensing, the firm behind the Original Penguin apparel brand, filed a lawsuit against the nonfungible token project Pudgy Penguins, alleging trademark infringement, dilution and unfair competition linked to clothing products.

The case centres on Pudgy Penguins’ use of penguin themed branding in apparel and trademark filings in the United States.

PEI argues that the NFT project’s trademarks and merchandise create confusion with its long established PENGUIN marks used on clothing for decades.

PEI Licensing claims Pudgy Penguins used and attempted to register trademarks resembling its branding.

The complaint states that Pudgy Penguins used penguin-themed word and design trademarks linked to apparel and related goods.

PEI argues these marks are confusingly similar to its federally registered PENGUIN word mark and penguin design trademarks used by the Original Penguin brand.

The company also says a penguin design appeared on its clothing as early as 1956.

The lawsuit alleges Pudgy Penguins’ trademark activity misappropriates PEI’s property rights and could lead consumers to associate the two brands.

PEI Licensing said it attempted to address the issue before filing the lawsuit by sending Pudgy Penguins a cease and desist letter in October 2023.

The letter stated that Pudgy Penguins’ products infringe and dilute the Original Penguin trademarks.

It also demanded that the NFT project abandon several applications submitted to the US Patent and Trademark Office seeking to register penguin related trademarks.

PEI claims the alleged infringement could create confusion among consumers purchasing apparel and related products.

The lawsuit asks the court to block Pudgy Penguins from securing trademark protection for its penguin-related branding.

PEI Licensing requested that the court direct the US Patent and Trademark Office to reject Pudgy Penguins’ pending trademark applications.

The company also asked the court to stop the NFT project from continuing activities that allegedly infringe the Original Penguin trademarks.