MGM/UA Wins Plea to Pursue Its Disney Suit

Reversing a Los Angeles Superior Court decision against MGM/UA Communications Co., a California appeals court ruled that the studio may proceed to a trial in its suit challenging Walt Disney Co.’s right to use the MGM name on its studio tour in Florida and on other planned attractions.

MGM/UA has argued that Disney, by building a working studio in Florida rather than simply an amusement park attraction, breached a 1985 agreement under which it had licensed the MGM name and logo.

A Disney spokesman said his company was prepared to go to trial to defend its use of the MGM name, and he pointed out that the appeals court disallowed MGM/UA’s claims related to merchandising and hotel operations at Disney’s studio tour.

Attorney Skip Miller of Christensen, White, Miller, Fink & Jacobs, which represents MGM/UA, said his company had dropped the hotel claim but planned to file an amended complaint challenging Disney’s merchandising rights to the MGM name.