Queen and Bowie heard the song and rightly sought to protect their work from Ice's Gap commercial lyrics. The one-hit wonder quickly realized how stupid it would be to get into a dick-measuring contest by taking the claim to court. And so, in a bit of news you might find depressing, he claims to have simply bought the rights to the original song, rather than go through the parade of lawyers that Queen and Bowie could throw at him. This would mean that 1) he made enough money off the ripoff to buy the thing he ripped off, and 2) he now profits when you listen to either song.
I said "claims to" earlier because after Ice mentioned this publicly, representatives from Queen disputed it, implying that instead some kind of compromise was reached without going into much detail. The most commonly reported version is that Ice ended up owning "Under Pressure," while Queen and Bowie got writing credits on "Ice Ice Baby," which is a Satanic bargain at best. Despite the passing of both Bowie and Freddie Mercury, their work remains some of the most seminal rock of all time. Meanwhile, Vanilla Ice performs as Vanilla Zerg for the Gathering of the Juggalos, and he's apparently happy.