WASHINGTON (dpa-AFX) - Utah-based ice cream maker Rebel Creamery has filed for Chapter 11 bankruptcy protection after being ordered to pay $23.8 million to rival Van Leeuwen Ice Cream in a trademark-related packaging dispute.
Rebel reported $13.78 million in assets and $23.85 million in liabilities as it appeals the judgment. The company, which produces low-carb and keto-friendly ice cream, sells its products through major retailers including Walmart, Target, Kroger and Safeway.
U.S. District Judge Eric Komitee ruled in July that Rebel had intentionally infringed and diluted Van Leeuwen's trade dress, finding similarities between the companies' packaging. The court ordered Rebel to pay $23.785 million from profits generated by the allegedly infringing products and redesign its packaging.
Van Leeuwen had argued that its distinctive packaging featured monochromatic cardboard pints, matching lids, pastel colours, black script lettering and a minimalist design. Rebel denied that it had copied the design and filed a notice of appeal two days before seeking bankruptcy protection.
The Chapter 11 filing allows Rebel to continue operating while it attempts to restructure its finances and pursue its appeal.
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