 In 1999, The Jim Henson Company issued a lawsuit against the company, claiming the series' puppets and resultant merchandise violated its copyright and trademark rights on The Muppets.CINAR and its licensees Eden LLC and Carson-Dellosa Publishing Company denied and continue to deny any wrongdoing or liability for infringement.A confidential settlement allowed CINAR to continue broadcasting the series, selling show merchandise, and a "mechanism for preserving the distinctive look of Jim Henson's Muppets in CINAR's future productions."