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I’m far from being a trademark lawyer (unlike the very clever Victor above), however my very limited concept of the law tells me that this is NOT a cut an dried case in either direction.

By this I mean, are your breaching the trademark of “The Wiggles”? Maybe, maybe not, and it would depend on the interpretation taken by the judge if it went to court, especially since both your product and theirs are in the same area of business being Childrens services and/or entertainment, even if you state that you don’t currently compete directly with them.

In these complex cases that involve a “gray area”, it often comes down to who is willing to push it further, and unfortunately if it went to court I think there is a fair chance they would be able to afford many more specialist lawyers and appeals than you would unfortunately.

It may be in your case worth getting a trademark law specialist such as Victorng involved on a paid basis to look into specifics for you, if you don’t already have one, which I assume you don’t if you need to ask here.