PEI Licensing, the owner of the Penguin clothing brand, accused the Pudgy Penguins NFT project of trademark infringement. The company filed a lawsuit in a US federal court, claiming that the Web3 brand sells physical goods using symbols associated with Penguin.
The proceedings are taking place in the US District Court for the Southern District of Florida. The lawsuit alleges that the NFT project's actions dilute the value of the Penguin brand, which has existed since 1955.
PEI Licensing stated it sent a cease-and-desist letter to Pudgy Penguins in October 2023 regarding the use of the disputed marks. According to the plaintiff, the project ignored the warning and continued to expand its line of consumer goods.
The company's lawyers argue that using the symbolism and name could give buyers the impression of a connection between the two brands. The document cites Pudgy Penguins' products and marketing materials as examples of infringement.
"The defendant knew or should have known that such actions mislead consumers and create a false impression of a partnership with PEI," the lawsuit states.
PEI Licensing is seeking financial compensation. The lawsuit includes a request to recover all profits the defendant generated from selling the disputed products, as well as to cover the damages the company claims resulted from the NFT brand's actions.
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