On February 10, 1998, Lyons Partnership sued costume renters and costume shops for offering bogus adult-sized Barney costumes. Lyons appealed this ruling to the Fifth Circuit Court of Appeals, but again lost their case to Giannoulas on 7 July 1999. In his case, Giannoulas cited that the purple dino was a "symbol of what is wrong with our society-an homage, if you will, to all the inane, banal platitudes that we readily accept and thrust unthinkingly upon our children", that his qualities are "insipid and corny", and that he also explains that, in an article posted in a 1997 issue of The New Yorker, he argues that at least some perceive Barney as a "pot-bellied," "sloppily fat" dinosaur who "giggle compulsively in a tone of unequaled feeble-mindedness" and "jiggles his lumpish body like an overripe eggplant." This court agreed with Giannoulas, and ruled against Lyons on 29 July 1998, declaring the sketches to be a parody that did not infringe on the rights of the character that Lyons created. On 8 October 1997, Lyons filed lawsuit in Fort Worth, Texas federal district court against Giannoulas, claiming copyright and trademark infringement and further claiming that such performances would confuse children. These threats did not stop the mock battles between the Chicken and Barney. Lyons Partnership began sending letters to Ted Giannoulas, who portrays the Chicken, demanding that he stop the alleged violation of Lyons' rights on the Barney character.
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In the same year when Warren Publishing sued Lyons Partnership for using the I Love You song, comedy sketches of The San Diego Chicken during professional sporting events began to include scenes of the Chicken beating up a dinosaur character. Finally, the jury found against Lyons on its counterclaim. The jury also found for Ganz on its failure to protect the market claim and awarded $1,565,333 in damages. It awarded Ganz damages in the amount of $2,255,935 for this breach. It found that Lyons had breached its agreement with Ganz because of delays in delivery of the toys under the March purchase order. The jury returned its verdict on August 20, 1996. While Lyons had counterclaimed that Ganz had failed to take delivery of and pay for 204,000 plush toys on which it was obligated under the parties' agreement. Ganz claimed a breach of contract resulting from Lyons' alleged delay in shipping the products, as well as Lyons' alleged failure in using its "best efforts" in protecting the Canadian toy market from infringements. This was taken to court to a jury between August 8 and 19, 1996, in Dallas, Texas. A "final" draft distribution agreement, to which Lyons now points as the contract, was never signed by either of them. There was some agreement but there was no final, written contract to which the parties affixed their signatures exists.
A contract dispute between Ganz, a Canadian toy distributor, which had obtained the right to distribute Barney and Baby Bop "plush" toys in Canada from Lyons, a United States limited partnership, which owned the intellectual property rights to these products. In early 1993, Ganz approached Lyons about becoming the Canadian mass-market distributor for Barney and Baby Bop plush. In December of 1994 when the PBS Special Barney Celebrates Childrenwas aired, " I Love You" was finally sung for the first time in a while, after Warren Publishing and Lyons finally made a settlement. 2 couldn't use the song, because of the lawsuit going on. The 3 major projects at the time, Barney Live! In New York City, Barney's Imagination Island and the album Barney's Favorites Vol. Penney Co (the company and store which had the Barney items at the time) for copyright infringement over the rights and lyrics to the " I Love You" song. Then 2 years later in 1994, Warren Publishing, the publisher of "Piggyback Songs", filed a lawsuit and sued Lee Bernstein, Lyons Partnership (The company that owns Barney), Time-Life Inc (The company that released most of Season 1 of Barney on VHS through a mail order service), EMI Records (The company that released Barney's Favorites Vol. Both Bernstein and Lyons made an agreement where Lee Bernstein would get credited and royalties for the rights to the song in all future Barney materials.
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In 1992, Lee Bernstein contacted the Lyons Partnership (the company that owns Barney) after she heard her song " I Love You" being used on the Barney & Friends TV series.
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