- PEI Licensing has sued Pudgy Penguins NFT for infringing on its trademark.
- PEI owns Original Penguin apparel, which has been in business for decades.
- Pudgy Penguins started as an NFT issuer before branching into physical items.
PEI Licensing, the company behind Original Penguin apparel, has sued the NFT brand Pudgy Penguins for diluting its trademark by selling clothes with confusingly similar identities.
PEI’s Infringement Claims
The company filed a suit with the US District Court of the Southern District of Florida on March 4, 2026, alleging that the NFT issuer ignored a cease-and-desist letter sent in October 2023 and continued selling physical merchandise under names such as Pudgy Penguins, Pengu Nation, and Forever Pudgy Penguins. PEI claims infringement on its decades-old penguin trademarks.
In the meantime, PEI alleged that Pudgy Penguins Inc.’s actions are misleading customers. Hence, it is requesting a jury trial, praying that all profits Pudgy Penguins received from sales tied to the alleged infringement be returned to Original Penguin.
Original Penguin Faces NFT Competition
For context, PEI Licensing is a subsidiary of Perry Ellis International and owns 22 registered penguin trademarks with the US Patent and Trademark Office. The company began using the penguin design on apparel in 1956, before introducing the “Penguin” word mark in 1967. Renowned artists, including Frank Sinatra, Dean Martin, Bob Hope, and Bing Crosby, famously wore the label’s mascot, Pete the Penguin, during the mid-century golf and lifestyle boom.
Meanwhile, Pudgy Penguins launched in 2021 as an Ethereum NFT that focused on digital collectibles before branching into physical consumer products in 2023. Some of Pudgy Penguins’ physical items include plush toys, which the company placed in over 2,000 Walmart stores, expanding into Target, Walgreens, and Amazon. Pudgy Penguins CEO Luca Netz has set a $50 million annual revenue target, stating plans to take the company public by 2027.
It is worth noting that PEI Licensing reacted after Pudgy Penguins moved beyond producing toys and started making apparel, such as hoodies, hats, and sweatshirts with the penguin image and name visibly printed on them. PEI argues that the representation creates a “likelihood of confusion” with its established brand.
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