Berry Meyerowitz founded Phase 4 Films in April 2009 when he bought back their North American distribution business.

In late December 2013, Disney filed a trademark infringement lawsuit against Phase 4 in California federal court, seeking an injunction against the continued distribution of Frozen Land in the U.S.[6][7] Disney alleged that less than three weeks prior to the release of its animated feature film Frozen, Phase 4 Films theatrically released The Legend of Sarila, which garnered "minimal box office revenues and received no significant attention."

To trade off the success of Disney's animated film and "[t]o enhance the commercial success of Sarila, the defendant redesigned the artwork, packaging, logo, and other promotional materials for its newly (and intentionally misleadingly) retitled film to mimic those used by [Disney] for Frozen and related merchandise.

[9][10] By late January 2014, the two companies had settled the case; the settlement stated that the distribution and promotion of The Legend of Sarila and related merchandise must use its original title and Phase 4 must not use trademarks, logos or other designs confusingly similar to Disney's animated release.

[10][11][12] Phase 4 was also required to pay Disney $100,000 until January 27, 2014, and make "all practicable efforts" to remove copies of Frozen Land from stores and online distributors until March 3, 2014.