News
Intellectual Property · Licensing Dispute · Royalties · Theme Parks
Sesame Workshop, the nonprofit producer of "Sesame Street," has filed a lawsuit against SeaWorld, a unit of United Parks & Resorts (PRKS), seeking to terminate their 45-year exclusive U.S. theme park licensing agreement.
The complaint, filed in Manhattan federal court, alleges SeaWorld breached their 2017 agreement by withholding royalties and closing "Sesame Street"-themed sites, including Sesame Place San Diego. Matters reportedly escalated in September when SeaWorld ceased all royalty payments, accusing Sesame Workshop of failing to invest in its own brand—a claim the nonprofit calls "preposterous." Sesame Workshop asserts SeaWorld's "rogue, retaliatory actions" threaten its reputation and disappoint families, leaving no choice but to seek termination, compensatory, and punitive damages.
This follows a September 2024 arbitration ruling that mandated SeaWorld pay Sesame Workshop over $11 million, including interest, for a prior breach, which SeaWorld only settled in October 2025.
