Utah-based Rebel Creamery, an ice cream manufacturer that can be found in Walmart, Kroger, Safeway, and other grocery stores across the U.S., has filed Chapter 11 bankruptcy protection as it appeals a $23.8 million judgement in favor of Van Leeuwen Ice Cream after a trade-dress dispute was settled in court.
With nearly $23.9 million in reported liabilities, the majority of which can be accounted for by the judgement, Rebel Creamery is seeking a break as it appeals a decision related to the dispute which originated over packaging.
U.S. District Judge Eric Komitee ruled that Rebel had intentionally infringed and diluted Van Leeuwen’s trade dress through its ice cream packaging, distinguished by pastel colors and distinctive branding including black script lettering and monochromatic pints with matching lids. Komitee found that Rebel’s packaging was similar and that the evidence supported findings of consumer confusion and bad faith. The judge ordered Rebel to stop selling its products and to redesign its packaging.
Rebel’s one saving grace was the fact that many of its sales were driven by demand for keto ice cream offerings rather than its packaging, which is why Van Leeuwen didn’t receive the full $36.4 million it was seeking. The ruling of $23.785 million was Rebel’s profits from sales of ice cream pints bearing the infringing trade dress.
