Scholastic and Parachute Press have settled a long-running legal dispute over who controls certain ancillary rights to the once hugely popular Goosebumps series developed by Parachute and published by Scholastic.

In an agreement reached last week, Scholastic acquired the Goosebumps trademark and all rights to the series from Parachute for $9.65 million. The out-of-court settlement gives Scholastic the right to exploit the series "on a worldwide basis in all media." The two parties began trading lawsuits as far back as 1997 over who owned various licensing rights, including merchandising and television rights.

Jane Stine, cofounder of Parachute, said the company agreed to the settlement "because we have always been committed to do what is best for the property." Stine said there is a possibility that Parachute will begin developing new Goosebumps titles for Scholastic. "I'm happy with the way things turned out and excited about the future," Stine said. Scholastic chairman Dick Robinson said he was "pleased that Scholastic will be able to continue to develop the franchise for years to come." Launched in the early 1990s, Goosebumps was a publishing phenomenon until its sales came to a crashing halt early in 1997; despite the abrupt decline, Scholastic has sold more than 250 million copies of Goosebumps books.

In a separate transaction, Scholastic has sold a portion of its 3% stake in Gallimard back to the French publisher. Scholastic is recording a $2.9-million pretax gain on the sale and will retain approximately 1% indirect ownership of the publisher.