Sesame Workshop, the nonprofit organization behind the beloved children’s television program “Sesame Street,” has initiated legal action against SeaWorld, accusing the theme park operator of failing to pay royalties and damaging the integrity of the “Sesame Street” brand. The lawsuit, filed in a Manhattan federal court, seeks to terminate the longstanding licensing agreement between the two entities, which has spanned over 45 years.
SeaWorld, now operating under the name United Parks & Resorts since a rebranding in 2024, has been the exclusive licensee for “Sesame Street” themed attractions across the United States. These parks and experiences prominently feature iconic characters such as Big Bird, Cookie Monster, and Elmo, drawing families and children nationwide. However, Sesame Workshop alleges that SeaWorld has neglected its contractual obligations, particularly under the most recent licensing agreement signed in 2017.
The complaint highlights that SeaWorld has withheld royalty payments for several years and has shuttered multiple Sesame Street-themed venues, including the temporary closure of Sesame Place in San Diego. The situation escalated in September when SeaWorld ceased all royalty payments entirely. In a move described by Sesame Workshop as a “preposterous” attempt to justify ending the partnership, SeaWorld accused the New York-based nonprofit of failing to invest adequately in its own brand, a claim Sesame Workshop strongly disputes.
the lawsuit, SeaWorld’s actions have put Sesame Workshop’s reputation at serious risk. The organization argues that the unauthorized use of its intellectual property and the closure of family-favorite attractions have disappointed countless children and their families who look forward to these experiences. The complaint stresses that SeaWorld’s retaliatory behavior threatens to undermine the trust and goodwill Sesame Workshop has built over decades.
SeaWorld is widely recognized for its marine life shows, particularly featuring the famous orca Shamu. In response to the lawsuit, a spokesperson for United Parks & Resorts, based in Orlando, Florida, expressed eagerness to “set the record straight in court,” signaling a forthcoming legal battle. The lawsuit also demands unspecified compensatory and punitive damages, reflecting the severity of the alleged breaches.
Sesame Workshop emphasized that United Parks & Resorts’ repeated failure to meet its contractual responsibilities has left the organization with no alternative but to pursue litigation to safeguard its brand and the trust placed in it by families worldwide. Notably, in September 2024, a federal judge in Orlando upheld an arbitration decision requiring SeaWorld to pay Sesame Workshop over $11 million, including interest, for violating their licensing terms. Despite this ruling, payment was delayed until October 2025, further straining the relationship between the two parties.
