Challenged by Navy, Disney drops bid to trademark "SEAL Team Six"

Last week, the Navy countered by filing two trademark applications of its own for the names “Navy SEALS” and “SEAL Team.”

On Wednesday, Disney deferred to the Navy.

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“Out of deference to the Navy’s application for these trademarks, we have withdrawn ours,” a Disney spokesman said.

Disney found itself in an increasingly embarrassing position, becoming the fodder for jokes on “The Daily Show With Jon Stewart” and the subject of TV news stories that sought to portray the entertainment company as crass for trying to cash in on the elite unit.

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