Sesame Workshop Sues SeaWorld, Seeking to End 45-Year Partnership

Sesame Workshop, the nonprofit behind Sesame Street, has filed a lawsuit against United Parks & Resorts, the parent company of SeaWorld, accusing the company of failing to meet its contractual obligations and withholding royalty payments tied to the use of the brand.

The lawsuit, which was filed on Thursday in the Southern District of New York, could end a partnership that has lasted more than four decades. Under licensing agreements dating back to the 1980s, SeaWorld became the exclusive U.S. theme park operator allowed to build Sesame Street-themed attractions and use characters such as Elmo and Cookie Monster.

The dispute arises from royalty payments connected to Sesame Place in Langhorne, Pennsylvania. Sesame Workshop says SeaWorld refused to pay millions of dollars in royalties owed under their agreement in 2022, prompting the nonprofit to take the matter to arbitration. In September 2024, a court ordered SeaWorld to pay the arbitration award with interest, but the lawsuit claims the company still did not make the payment. SeaWorld ultimately paid in October 2025 after writs of garnishment were issued the following year.

“SeaWorld dragged its feet in finally making payment until Sesame Workshop was forced to file a motion for the clerk to issue writs of garnishment in September 2025,” the lawsuit states. It also claims SeaWorld has “engaged in a series of willful, unilateral retaliatory breaches designed to undermine the parties’ relationship and harm Sesame Workshop.”

Additional complaints outlined in the recent court filings include unpaid fees tied to the San Antonio closure, minimal notice about plans to shift the San Diego park to a seasonal schedule, locking Sesame Workshop staff out of shared social media approval and project tracking systems, and distributing dozens of marketing materials using Sesame Workshop’s intellectual property without approval. The lawsuit claims those actions are “tarnishing the reputation of Sesame Workshop’s brand.”

“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 spokesperson for Sesame Workshop told NBC News.

SeaWorld has acknowledged the lawsuit. In a statement to WESH 2, a spokesperson for United Parks & Resorts said the company is “aware of the lawsuit filed by Sesame Workshop and look forward to setting the record straight in court.”

Sesame Workshop is seeking to terminate its licensing agreement with SeaWorld, along with damages, attorneys’ fees, and other compensation.

Featured image: SeaWorld