By Samantha Paul Rebel Creamery, the Utah-based maker of low-carb and keto-friendly ice cream, is fighting a major U.S. trademark dispute after a federal judge ordered it to turn over $23.785 million in profits to rival Van Leeuwen Ice Cream. The case concerns the appearance of Rebel’s ice cream pints, not the ingredients or safety of the product. In July 2026, a federal court found that Rebel intentionally infringed Van Leeuwen’s trade dress and ordered it to change its packaging. Rebel has appealed and has also filed for Chapter 11 bankruptcy protection.
What Was the Rebel Creamery Lawsuit About?
Van Leeuwen Ice Cream LLC filed the lawsuit against Rebel Creamery LLC in April 2021 in the U.S. District Court for the Eastern District of New York. It argued that Rebel’s pint packaging was too similar to its own distinctive design.
Van Leeuwen’s classic dairy pints use monochromatic cardboard containers, matching lids, mostly pastel colors, minimalist layouts and black cursive lettering. The court found that Rebel used a highly similar overall presentation, although its containers also displayed information about its low-carb products.
This type of claim is known as trade-dress infringement. Under the federal Lanham Act, trade dress can protect the overall visual appearance of packaging when that appearance is distinctive, nonfunctional and capable of identifying the source of the goods.
Why Did Van Leeuwen Win?
After a bench trial, U.S. District Judge Eric R. Komitee concluded that Van Leeuwen’s packaging was protectable and that Rebel’s design created a likelihood of confusion.
The court considered the strength and similarity of the packaging, competitive proximity, actual confusion and Rebel’s intent. Evidence included a reported accidental Rebel purchase, confusion among grocery-store employees and survey evidence showing a 34.3% net confusion rate.
The ruling was especially damaging because the court found intentional copying and bad faith. Judge Komitee rejected Rebel’s explanation of how its packaging had been developed and concluded that the evidence supported deliberate imitation of Van Leeuwen’s trade dress.
What Did the Court Order?
On July 16, 2026, the court held Rebel liable for federal trade-dress infringement, New York trade-dress infringement, unfair competition and dilution. Van Leeuwen was awarded $23.785 million of Rebel’s profits from sales of infringing pints.
The court reduced the calculated profits by 33%, reasoning that part of Rebel’s business came from consumers focused on “better-for-you” ice cream who were unlikely to have been Van Leeuwen dairy customers.
The court also issued an injunction requiring Rebel to stop selling products with trade dress likely to be confused with Van Leeuwen’s and to redesign its packaging.
Rebel Creamery Filed an Appeal
Rebel filed a notice of appeal on August 12, 2026. The appeal was opened in the U.S. Court of Appeals for the Second Circuit as Case No. 26-2258.
The appeal could result in the district court judgment being affirmed, modified or reversed. For now, the $23.785 million award remains a disputed liability being challenged by Rebel.
Why Did Rebel Creamery File for Chapter 11?
On August 14, 2026, Rebel filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Utah, Case No. 26-25006.
Early filings reported about $13.8 million in assets and roughly $23.85 million in liabilities. Van Leeuwen’s $23.785 million judgment was listed as a disputed unsecured claim and represented nearly all of the fixed unsecured debt identified in those filings.
Chapter 11 does not automatically mean Rebel is closing. It generally allows a company to continue operating while restructuring its finances. The bankruptcy also creates an automatic stay that may delay efforts to collect the monetary judgment, while the effect on enforcement of the packaging injunction may require separate consideration.
What Happens Next?
The dispute is now moving through both appellate and bankruptcy proceedings. Rebel is challenging the judgment in the Second Circuit while reorganizing under Chapter 11 in Utah. The outcome of the appeal could significantly affect Van Leeuwen’s claim in the bankruptcy case.
The lawsuit is also an important warning for U.S. food companies. Trademark law can protect more than a brand name or logo. A distinctive combination of colors, typography, materials and overall packaging may qualify as trade dress, and infringement can result in injunctions and substantial profit awards.