Sesame Workshop, known for its iconic TV show “Sesame Street” sued SeaWorld on Tuesday, to end their decade-long relationship. It accused the theme park operator of withholding royalties and undermining the “Sesame Street” brand.
Sesame Workshop said in a complaint filed in Manhattan federal court that SeaWorld, a unit of United Parks & Resorts, has been its exclusive U.S. theme park licensee for 45 years, opening several “Sesame Street”-themed parks and attractions featuring characters including Big Bird, Cookie Monster and Elmo.
However, SeaWorld has for a few years ignored the most recent licensing agreement, which dates from 2017, including by withholding royalties and closing sites, including the temporary closure of Sesame Place San Diego, according to Sesame Workshop.
READ: Protein Bar startup David sued over allegedly misleading calorie counts (
According to the complaint, matters worsened in September when SeaWorld stopped paying royalties to Sesame Workshop altogether, and as a pretext to end the relationship made the “preposterous” accusation that the New York-based nonprofit failed to invest in its own brand.
“SeaWorld’s rogue, retaliatory actions pose an imminent threat” to Sesame Workshop by tarnishing its reputation, using its intellectual property without permission and “disappointing children and families” who hoped to visit the closed sites, the complaint said.
“United Parks & Resorts has repeatedly failed to honor its contractual obligations, leaving Sesame Workshop no choice but to pursue litigation to protect our brand and the trust that families place in it,” a Sesame Workshop spokesperson said in an emailed statement.
READ: US states sue Trump administration over stoppage of SNAP (
The lawsuit also seeks unspecified compensatory and punitive damages. In September 2024, a federal judge in Orlando upheld an arbitration ruling that required SeaWorld to pay Sesame Workshop more than $11 million, including interest for breaching their licensing agreement. SeaWorld didn’t pay until October 2025, Sesame Workshop.
This comes days after six guests were reportedly taken to the hospital after a ride malfunctioned at SeaWorld Orlando. The guests were riding the Florida theme park’s Manta roller coaster on Friday, March 6, when it unexpectedly paused for seven minutes, according to reports from News 6, Fox 35 Orlando, and WESH 2.
While it’s unclear what caused the riders’ injuries, the guests were transported to the hospital by the Orange County Fire Rescue Department as a result of the incident, the outlets report. Their injuries were not life-threatening. The park also told the outlets that the ride resumed its operations shortly after, adding, “The safety of our guests, ambassadors, and animals is our top priority.”