Rebel Creamery, a keto-friendly ice cream brand, has filed for bankruptcy after nine years of operation. The decision comes on the heels of Rebel Creamery losing a packaging battle with rival Van Leeuwen and being ordered to pay $23.8 million.
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U.S. District Judge Eric Komitee ruled on July 16 that Rebel had infringed and diluted Van Leeuwen's trade dress, and that it had done so on purpose.
"The evidence at that trial left no doubt," he wrote.
Trade dress is the overall look of a product, not its name or logo. The court found Van Leeuwen's look came down to four things: a cardboard pint in a single color with a lid to match, soft pastel shades, black script lettering with a big first letter, and not much else on the carton.
Rebel Creamery Files For Bankruptcy
The Utah-based company, which sold its Rebel Ice Cream at retailers Target, HEB, 7-Eleven, Kroger and Walmart, filed for Chapter 11 protection Friday in the US Bankruptcy Court for the District of Utah, The Street reported.
Komitee ordered Rebel to stop selling the infringing packaging and redesign its pints.
"The evidence at trial left no doubt that Rebel infringed and diluted Van Leeuwen's trade dress and did so intentionally," Komitee wrote, according to the outlet.
"As a result, Rebel will be enjoined from selling the infringing products. And required to redesign its packaging to avoid any further infringement."
Rebel Ordered to Pay $23.8 Million
Van Leeuwen asked for $36.4 million. Komitee took Rebel's own sales figures for the pints and cut about a third. The court ruled that some of those sales came from demand for keto ice cream. Rather than from the way the carton looked.
Ultimately, Rebel was ordered to pay $23.785 million.
Rebel filed an appeal Aug. 12 challenging the $23.8 million judgment, two days before its bankruptcy filing.
Van Leeuwen was founded in New York City in 2008 by brothers Ben and Pete Van Leeuwen and Laura O'Neill.
Nearly a decade later, Rebel Creamery was founded in 2017 by Austin and Courtney Archibald.
The keto-friendly ice cream brand boasts over 20 flavors.
