Penguin Apparel Brand Targets Crypto IP Pudgy Penguins in Trademark Infringement Lawsuit
PEI Licensing Sues Pudgy Penguins for Trademark Infringement
The firm behind the Original Penguin brand, PEI Licensing, has filed a lawsuit against Pudgy Penguins, a popular crypto brand, alleging trademark infringement. The lawsuit, filed in the District Court for the Southern District of Florida, accuses Pudgy Penguins of unauthorized use and attempted registration of various Penguin word and design trademarks, which PEI Licensing claims violates laws protecting fair competition and trade practices.
Background of the Case
Pudgy Penguins gained fame in the crypto world after launching an Ethereum NFT collection in 2021. The brand expanded its presence with a Solana-based culture coin, PENGU, and even introduced a physical toy line in major retailers like Walmart and Target, generating over $10 million in sales within a year.
PEI Licensing, known for using penguin designs on apparel since the 1950s, alleges that Pudgy Penguins’ actions are causing damage to its goodwill and business reputation. The lawsuit claims that consumers could be misled into believing a false association between the two brands due to similarities in their products and marketing.
Legal Actions and Responses
PEI Licensing stated that it sent Pudgy Penguins a cease-and-desist letter in 2023 and opposed at least two trademark applications by the crypto brand with the US Patent and Trademark Office in 2024. The lawsuit demands monetary relief for profits from Pudgy Penguins’ sales using similar marks, immediate rejection of pending trademark applications, and the destruction of products causing confusion with PEI’s marks.
In response to the lawsuit, Jennifer McGlone, Chief Legal Officer of Pudgy Penguins & Igloo Inc, expressed surprise at the legal action, mentioning ongoing discussions to resolve the matter privately. McGlone defended Pudgy Penguins, stating that the trademarks are visually distinct and cater to different markets and audiences. The brand remains confident in its trademark applications’ approvals from the USPTO.
Attorneys for PEI Licensing have not yet commented on the matter.
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