[Clothing Brand Penguin Sues NFT Brand Pudgy Penguins for Trademark Infringement] According to The Block, PEI Licensing, the owner of the Penguin clothing brand, has filed a lawsuit in federal court accusing the NFT brand Pudgy Penguins of trademark infringement. PEI stated that it issued a cease-and-desist letter to Pudgy Penguins in October 2023, but the latter continued to produce and sell retail products such as plush toys and clothing, diluting the value of the Penguin brand, which was established in 1955. The lawsuit lists instances of alleged infringement by Pudgy Penguins, claiming that unauthorized use of the trademark could mislead consumers into believing there is an association between the two brands. Pudgy Penguins has not yet responded to requests for comment. Since 2023, the brand has been selling plush toys in chain stores such as Walmart and Target, and the following year announced sales exceeding 1 million units, along with the launch of hats, hoodies, and other clothing products. PEI is seeking to recover profits from the defendant's sales, damages, and a jury trial.