Less than a month after a daring raid on Osama bin Laden's secret hideout, the U.S. Navy's SEAL Team 6 notched a victory over the Magic Kingdom.

Walt Disney Co. said Wednesday that it would pull an application with the U.S. Patent and Trademark Office in which the entertainment giant sought the exclusive right to use the term "SEAL Team 6" on items ranging from toys and games to snow globes and Christmas stockings.

Disney...