Settlement Reached on National Lampoon Name

Two entertainment firms battling over the National Lampoon trademark have settled out of court.

In the settlement, J2 Communications Inc. of Los Angeles retained control over the National Lampoon name--which is associated with the satirical magazine and movies such as “Animal House,” and which J2 said is worth more than $5 million.

However, J2, which sells movie home videos, agreed to pay about $150,000 to ITC Distribution Inc. of Studio City. And the two sides agreed to end a 1988 contract that had called for J2 to distribute 17 of ITC films.

ITC, a film distributor that is part of ITC Entertainment Corp., sued J2 last year alleging that J2 had withheld more than $150,000 in profits that were due to ITC.

In July, ITC filed another suit and sought the right to foreclose on the National Lampoon trademark to recoup the money ITC said it was owed. J2 countersued, alleging that ITC breached a contract.

With the settlement, ITC agreed not to make a movie using the National Lampoon name, and J2 will stop selling ITC films. Each side agreed to pay its own legal fees.