Actually, I don't think that example is about copyright but about trademark. Short names and phrases (like "Mickey Mouse") can't be copyrighted, but they can be trademarked. I do think that it's legal, but I don't think that the analysis of why it's legal is based on copyright. It would, instead, be closer to what you said further down in your post. That is much less certain.
Thank you for the valuable reply. It seems that you have much more knowledge in this area than me so I give a bow. Where is this world going, when legal departments sue people for such little things just to prove the necessity of their own existence to the management? Bahhhh
I am hoping to flag the use of any brands in my novels and have them listed somewhere. When I go to edit I'll ask a pro regarding their usage. Not going to use images from others for commercial work, have permission for a song for non-commercial. Everything else can be sorted later. I do not think it should be so key to the story that removal of its use requires rewrite.
Yes, I have to admit that it was a bad example. Yes, as Steerpike pointed out the behavior of big companies is unpredictable. Unfortunate
Sorry song permission is for the movie I want to write / produce. If I need to make it commercial I revisit the band or choose a different song. Am also considering different ways of monetising my writing.