PEI Licensing, the company behind the global Original Penguin apparel brand, has filed a trademark infringement lawsuit against the popular crypto and NFT project Pudgy Penguins. The lawsuit was filed on March 4, 2026, in the U.S. District Court for the Southern District of Florida.
The apparel firm alleges that Pudgy Penguins' "unauthorized use and attempted registration of various Penguin word and design trademarks" violates laws protecting fair competition and trade practices. PEI Licensing, which has used a penguin design on clothing since at least 1956 and a penguin word mark since 1967, claims the crypto brand's actions "cause damage and irreparable injury to PEI, and to its goodwill and business reputation."
"[Pudgy Penguins'] use of defendant's marks is likely to mislead, deceive, and confuse the purchasing public and the trade," the lawsuit states. "It is likely that consumers will mistakenly believe that defendant is connected, associated, or in some way affiliated with PEI, when in fact no such connection, association, or affiliation exists."
To support its claims, PEI provided visual examples comparing "immediate similarities" in apparel and headwear offered by both brands. The suit also highlights Pudgy Penguins' applications to register trademarks for phrases like "I am my penguin and my penguin is me" and "Pengu Nation" for use on goods identical to those PEI uses its own marks on.
The legal conflict is not new. PEI Licensing claims it sent a cease-and-desist letter to Pudgy Penguins as early as October 20, 2023. The company later filed opposition notices with the United States Patent and Trademark Office (USPTO) in 2024 against at least two of Pudgy Penguins' trademark applications. According to the filing, Pudgy Penguins continued using the marks in commerce and did not abandon its USPTO applications following these actions.
The lawsuit characterizes Pudgy Penguins' continued use of the marks as "willful and intentional acts intended to trade on the reputation and goodwill of PEI." As relief, PEI is seeking all profits from Pudgy Penguins' sales of items using the contested marks, immediate rejection of its USPTO applications, and the destruction of all products in the crypto brand's custody that bear marks confusingly similar to PEI's.
Pudgy Penguins, which launched its Ethereum NFT collection in 2021, has grown into one of crypto's most recognizable native intellectual properties (IPs). The brand expanded with a physical toy line sold in major retailers like Walmart and Target, generating over $10 million in sales in less than a year, and later launched a Solana-based culture coin, PENGU.
