SeaWorld sued over mishandling 'Sesame Street' brand, unpaid royalties
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Stuffed Orca whale toys are displayed for sale at SeaWorld in San Diego, California, U.S., May 31, 2017. REUTERS/Mike Blake/File Photo
By Jonathan Stempel
NEW YORK, March 12 (Reuters) - Sesame Workshop, known for the iconic children's TV show "Sesame Street", sued SeaWorld on Thursday to end their decades-long relationship, accusing the theme park operator of withholding royalties and undermining the "Sesame Street" brand.
In a complaint filed in Manhattan federal court, Sesame Workshop said 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.
Sesame Workshop said 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 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.
SeaWorld is known for the orca Shamu. A United Parks spokesperson said in a statement the Orlando, Florida-based company looked forward to "setting the record straight in court." United Parks changed its name from SeaWorld Entertainment in 2024.
The lawsuit also seeks unspecified compensatory and punitive damages.
“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 a statement.
In September 2024, a federal judge in Orlando upheld an arbitration ruling that SeaWorld pay Sesame Workshop more than $11 million including interest for breaching their licensing agreement. SeaWorld didn't pay until October 2025, Sesame Workshop said.
(Reporting by Jonathan Stempel in New York; Editing by Mark Porter, Aurora Ellis, Cynthia Osterman Editing by Louise Heavens)
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