Montreal: Cinar Corp. has settled a lawsuit filed last year in the u.s. federal court by The Jim Henson Company.

In the suit, Henson claimed copyright and trademark rights violations against the design and use of puppets featured in the popular preschool series Wimzie’s House and related Wimzie merchandise. Cinar denied and continues to deny any wrongdoing or liability.

Terms of the settlement are confidential but provide for the continued broadcast of the show and sale of Wimzie ancillary products. A press release says, ‘The agreement also provides a mechanism for preserving the distinctive look of Jim Henson Muppets in Cinar’s future productions.’

‘We are delighted that it’s been settled and that this agreement leaves an open door between the two companies,’ says Ron Weinberg, Cinar’s president and co-ceo.