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Yes; although it is a registered trademark of Disney, it is only registered for certain classes of goods and services (amusement park services and online computer games). In fact there is an additional registration of the phrase owned by a church in Oklahoma, for use in "youth and adolescent ministry services," and you can be certain Disney would have objected to that if it were possible for them to do so.

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Q: Can the word Toontown legally be used in a non-fan fiction work to describe a place where cartoon characters live?
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