Yeah, post break up band squabbles are never fun to watch for their fans.
Witness David Bryne, and the Talking Heads, or Danzig and the Misfits, and various others. (FEAR and Lee Ving, seems a little less acrimonious, but I wasn't there so I don't know.) And then you bring labels into it and sheesh...

Bryne claims to have tons more Talking Heads material that the label won't let him release.
Still it would kind of hella suck to see the DK being used to peddle khakis, or dish soap. Jello did the right thing, in the wrong way it seems.
This all leads down a twisty slope, do a bunch of punk rock kids need to 'respect the intellectual property' of some band when naming a group house? On the other hand punk's always been big on originality so in a way some overt copyright violations would never be cool, even if calling in lawyers is more 'uncool'.
One can imagine a dystopian future where a kid drawing a band logo on his back pack in ball point, or his jeans gets a visit from jack booted RIAA goons with a cease and desist. But that would be just silly.