Disney and MGM Court Battle: You Win Some, You Lose Some : Entertainment: The Burbank studio gets to continue using rival’s name in its theme parks. But Kerkorian wins same right for a Las Vegas facility.

Walt Disney Co. won its legal battle Friday with rival MGM studio to continue using MGM’s name in theme parks, even when they include a working production facility. But Disney was unable to prevent a separate firm, MGM Grand Inc., from using the name in an amusement park planned for Las Vegas.

Los Angeles Superior Court Judge Curtis Rappe upheld Disney’s claim that a 1985 agreement with MGM gives Disney exclusive worldwide rights to use the MGM name in movie-based theme parks. The Burbank-based studio now uses the MGM name, the famous MGM lion logo and clips from MGM’s film library at its Disney-MGM Studios tour in Florida. A similar theme park is being developed in Europe.

Rappe’s decision also cleared MGM Grand Inc., controlled by Los Angeles financier and former MGM studio owner Kirk Kerkorian, to use the MGM name for an amusement park being developed as part of a Las Vegas casino resort, on grounds that the park does not resemble the Disney-MGM attractions in Florida or Europe. Disney tried unsuccessfully to stop MGM Grand from using the name altogether in developing the park.

The ruling stems from a trial that began this summer, in which MGM studio accused Disney of breach of contract, alleging that Disney concealed plans to include a working studio at the Florida theme park. MGM sought more than $100 million in damages.

Disney countered that its plans for a studio were publicly known, including as evidence a videotape in which Disney Chairman Michael Eisner and then-Florida Gov. Bob Graham discussed production plans when the project was first announced.

MGM spokesman Craig Parsons said the studio is disappointed with the ruling, adding that no decision has been made on whether it will appeal. MGM studio lawyer Terry Christensen said that although Disney will be allowed to use the MGM name, Rappe’s decision would not prevent either MGM or MGM Grand from using the name in future theme parks.

In a statement, Eisner said the company is delighted with the decision. He added that Disney will closely monitor MGM Grand’s claim that its Las Vegas amusement park will not be a movie-based theme park.