「Pudgy Penguins」 Accused of Trademark Infringement by Classic Penguin Apparel Brand

March 6 — Original Penguin’s parent firm PEI Licensing (founded 1955) has formally sued “Fat Penguin” operator Pudgy Penguins Inc. over trademark infringement and brand devaluation. PEI claims Pudgy Penguins has used names like “Pudgy Penguins,” “Pengu Nation,” and “Forever Pudgy Penguins,” plus penguin-themed logos, on retail goods including clothing, hats, hoodies, and plush toys. These uses, the suit alleges, could easily lead consumers to mistakenly assume a connection between the two brands. Despite PEI sending a cease-and-desist letter in October 2023, Pudgy Penguins has continued producing and selling the related products. Pudgy Penguins started as a 2021 Ethereum NFT project before successfully pivoting to physical commercialization. In 2023, it began selling plush toys at major retailers like Walmart and Target, moving over 1 million units quickly before expanding into clothing. PEI is seeking full infringement profits, its own losses, and other damages from Pudgy Penguins. The company has not publicly responded to the lawsuit.