Sesame Workshop, the nonprofit behind the beloved "Sesame Street" brand, has filed a lawsuit against SeaWorld alleging the theme park company failed to honor contractual obligations and provide royalty payments.
The lawsuit seeks to end a decades-long partnership, which gave the chain a license to create "Sesame Street"-themed parks and to use the nonprofit's intellectual property, including characters such as Elmo and Cookie Monster.
"While we did not want to end a partnership that has spanned 45 years, we have regrettably determined that the termination of our agreement is the only path forward,” a Sesame Workshop spokesperson said in a statement to NBC News.
The lawsuit alleges that for years, the two brands maintained a positive working relationship, opening two standalone parks using intellectual property from the children's TV show and four Sesame Land attractions.
In 2022, however, SeaWorld allegedly refused to pay Sesame Workshop millions of dollars in royalties for the Sesame Place park in Langhorne, Pennsylvania, forcing Sesame Workshop to arbitrate the claim, according to the lawsuit. Sesame Workshop alleges that SeaWorld failed to pay outstanding royalties, forcing the nonprofit to file suit in federal court.
Since then, the lawsuit alleges, SeaWorld "has engaged in a series of willful, unilateral retaliatory breaches designed to undermine the parties’ relationship and harm Sesame Workshop."
In 2025, SeaWorld allegedly stopped making royalty payments and failed to pay amounts stipulated in the company's agreement for the closure of a "Sesame Street" attraction in San Diego and for a planned third park. The theme park company also abruptly closed a standalone "Sesame Street" park without notifying Sesame Workshop, "disappointing children and families who already made plans to visit," according to a statement from the nonprofit.
Sesame Workshop also accused SeaWorld of "tarnishing the reputation of Sesame Workshop’s brand" by distributing unapproved marketing materials under the brand's name, characters and intellectual property. Dozens of social media posts, emails and newsletters were distributed by SeaWorld featuring "Sesame Street" characters — as well as typos, the lawsuit alleges.
A spokesperson for United Parks, formerly known as SeaWorld, said in a statement to NBC News that the company is "aware of the lawsuit filed by Sesame Workshop and look[s] forward to setting the record straight in court."
Sesame Workshop also disputed SeaWorld's claims that it had breached the companies' agreement by failing to "invest in its brand."
Sesame Workshop is seeking termination of its agreement with SeaWorld, as well as compensation for attorneys’ fees and damages, with interest.
