When Disney (NYSE: DIS) announced it was trying to trademark the term "SEAL Team 6," the outrage was almost palpable -- and not just from Hasbro (NYSE: HAS).

If anyone was going to profit from the new great American heroes, you would have expected it to be the makers of G.I. Joe -- or failing that, virtual first-shooters from Electronic Arts (Nasdaq: ERTS) or Activision Blizzard (Nasdaq: ATVI). But Disney? The House of Mouse? Seriously?

And yet, Disney was first into the breach -- where it soon found itself in the middle of a firefight. The company says it was only trying to secure high ground for a new TV show for ABC -- along the lines of CBS' The Unit, JAG, and NCIS. But the U.S. Navy was not amused. It soon counterattacked with a pair of applications to the U.S. Patent and Trademark Office, demanding rights to posters, clothing, goods, and services featuring the name of its elite fighting force.

After-action report
Faced with overwhelming firepower, and demoralized by public censure, Disney surrendered to SEAL Team 6 yesterday. It has withdrawn its trademark applications, and (presumably) abandoned plans for the new television drama. Good work, Navy. And good riddance, Disney.

What will Disney's next "bright" idea be? If you like car crashes and revel in PR fiascos, add it to your Watchlist and revel in the horror.

Fool contributor Rich Smith owns shares of Activision Blizzard. Click here to see his holdings and a short bio. The Motley Fool owns shares of Activision Blizzard. Motley Fool newsletter services have recommended buying shares of Walt Disney, Hasbro, and Activision Blizzard. Motley Fool newsletter services have recommended creating a synthetic long position in Activision Blizzard and a short position in Hasbro. Try any of our Foolish newsletter services free for 30 days.

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