The company behind the clothing label Original Penguin has filed a trademark lawsuit against the crypto-native brand Pudgy Penguins, accusing the project of using penguin-themed marks that resemble its long-standing apparel trademarks.
The complaint came from PEI Licensing and was filed on March 4 in the United States District Court for the Southern District of Florida. The firm claims that Pudgy Penguins used penguin names and logos on clothing products in ways that violate trademark protections and unfair competition laws.
PEI Licensing operates several fashion brands connected to the Perry Ellis portfolio. The company argues that Pudgy Penguins’ branding on apparel could cause confusion among consumers.
“This action results from Defendant’s unauthorized use and attempted registration of various PENGUIN word and design trademarks in connection with apparel and related goods and services that are confusingly similar to PEI’s federally registered and famous PENGUIN and penguin design trademarks,” the complaint states.
https://t.co/HyjUVkTnAS pic.twitter.com/nolMvZTvCk
— Pudgy Penguins (@pudgypenguins) March 5, 2026
Long-standing apparel trademark claims
PEI Licensing states that its penguin branding dates back decades. Court documents say the company began using a penguin design on apparel as early as 1956. The firm also says it has used the PENGUIN word mark since at least 1967.
The company argues that the newer crypto brand threatens those trademark rights.
“[Pudgy Penguins’] use of defendant’s marks is likely to mislead, deceive, and confuse the purchasing public and the trade,” the lawsuit reads. “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.”
PEI Licensing included examples in its complaint that compare apparel and hats sold under the Original Penguin brand with items marketed by Pudgy Penguins.
The lawsuit also references trademark filings by Pudgy Penguins that include phrases such as “I am my penguin and my penguin is me,” and “Pengu Nation.” According to the complaint, those phrases appeared in trademark applications for apparel and related merchandise.
“These goods and services are identical to those with which PEI uses its Penguin marks and nearly identical to those for which PEI owns registrations,” the complaint states.
Cease-and-desist dispute predates the lawsuit
The legal dispute did not begin with the court filing. PEI Licensing says it sent a cease-and-desist letter to Pudgy Penguins on October 20, 2023. The letter demanded that the project stop using marks that resemble its penguin branding.
The apparel company also challenged trademark applications filed by Pudgy Penguins with the United States Patent and Trademark Office during 2024.
Court filings claim the crypto brand continued to sell clothing and pursue trademark registration after those objections.
“Following PEI’s cease-and-desist letter and PEI’s oppositions, [Pudgy Penguins] continued to use defendant’s marks in commerce in connection with apparel and online sales of apparel, and did not abandon defendant’s applications with the USPTO,” the complaint states.
PEI Licensing argues that the actions represent “willful and intentional acts intended to trade on the reputation and goodwill of PEI.”
The company has asked the court to block Pudgy Penguins from using the disputed marks and to reject related trademark applications.
Crypto brand disputes the allegations
Pudgy Penguins rejects the claims. The project says its trademarks differ visually from those of the apparel brand.
Jennifer McGlone addressed the lawsuit in a statement provided to media outlets.
“Pudgy Penguins has been made aware of the lawsuit filed by PEI and was surprised by the action, particularly as both parties had been engaged in productive discussions to resolve this matter privately,” McGlone said.
She also said the project believes its trademark filings have progressed successfully at the USPTO.
“To date, Pudgy Penguins has prevailed on advancing these applications before the U.S. Patent and Trademark Office, and we remain confident that PEI’s claims lack merit,” McGlone added.
McGlone described the two brands as operating in different markets. She also argued that the trademarks target separate audiences.
“The trademarks in question are visually distinct and serve entirely different audiences and markets,” she said. “We have the utmost confidence that we will prevail, as Pudgy Penguins has already secured multiple trademark application approvals from the USPTO covering the Pudgy Penguins brand and related marks.”
NFT brand expands beyond digital assets
Pudgy Penguins began as a collection of nonfungible tokens launched on Ethereum in 2021. The collection later evolved into a broader brand that includes physical products and digital assets.
The project has introduced a culture coin called PENGU on the Solana ecosystem. The brand also expanded into retail products.
Pudgy Penguins toys reached major stores such as Walmart and Target. The company reported more than $10 million in toy sales within less than a year.
The lawsuit now places the brand’s apparel strategy under legal scrutiny. PEI Licensing has asked the court to award damages equal to profits from the disputed products. The company also requested destruction of any goods that could create confusion with its trademarks.
Attorneys representing PEI Licensing did not respond immediately to requests for comment from media outlets.
Matvii Diadkov
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