I'm not American and because of the name I've always assumed federal express was government-related.
However it had a happy ending: the United States Postal Service -- the real one, as in stamps and letters -- signed an agreement with Sub Pop granting a free license to use the name in exchange for working to promote using the mail. Future copies of the album and the group's follow-up work will have a notice about the trademark, while the federal Postal Service will sell the band's CD's on its Web site, potentially earning a profit. The band may do some television commercials for the post office.
[1] https://www.nytimes.com/2004/11/06/arts/music/postal-service...