Dennis, I think you misread that. He means that MTH can not use the Lionel or American Flyer name (on trains or boxes). MTH can produce the trains but they would have to be MTH Lines like the old Tinplate Traditions.
Also, I've always been told that the deal between MTH & Lionel was not part of a settlement. That is a myth. It was a separate licensing agreement between MTH & Lionel.