Sesame Workshop filed a lawsuit against SeaWorld and its parent company on March 12 over an alleged breach of contract and unpaid royalty fees
Credit: Alamy; Zack Wittman/Bloomberg via Getty
NEED TO KNOW
- Sesame Workshop is suing SeaWorld for allegedly withholding royalty payments and breaching their long-standing licensing agreement
- The non-profit organization has had a long-standing licensing agreement with SeaWorld for over 45 years, but they now wish to terminate the partnership
- They are claiming that SeaWorld’s actions have harmed their brand and mission to support children’s growth and education
The non-profit organization behind the Sesame Street brand is suing SeaWorld and its parent company for an alleged breach of contract and unpaid royalty fees.
According to a complaint filed on Thursday, March 12, and obtained by PEOPLE, Sesame Workshop — an independent organization that licenses the Sesame Street characters and name — is looking to end its long-running partnership with SeaWorld as a result of what they allege is the park's mishandling of the brand.
The organization, which has had a licensing agreement with SeaWorld for over 45 years, is suing the theme park and its parent company United Parks & Resorts due to their alleged “refusal to honor contractual obligations as the licensee of Sesame Workshop’s iconic and valuable Sesame Street brand,” according to the complaint.
In a statement shared with PEOPLE, a spokesperson for Sesame Workshop said, in part, “SeaWorld’s actions have harmed Sesame Workshop, wrongfully withholding royalty payments that are vital to supporting our charitable mission and undermining our ability to oversee SeaWorld’s use of our beloved characters and brand.”
SeaWorld also shared a statement with PEOPLE, which says in part: “We are aware of the lawsuit filed by Sesame Workshop and look forward to setting the record straight in court.”
Credit: Alamy
The spokesperson adds, “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.”
Per the complaint, the issue allegedly first began in 2022 when SeaWorld “failed to pay millions of dollars in royalties” to Sesame Workshop for its Sesame Place park in Langhorne, Penn.
“Sesame Workshop was forced to go through arbitration to recover the unpaid royalties," which they say they were eventually awarded in full. "Yet despite the arbitrators’ award, SeaWorld still refused to pay,” the filing alleges.
Sesame Workshop filed a lawsuit in federal court in August 2023 that alleges “SeaWorld took steps to mount a unilateral retaliation campaign against Sesame Workshop.”
The complaint then lists a number of examples of this alleged retaliation, including when SeaWorld “reneged on its promise to open a third standalone Sesame Place theme park” in August 2024.
Then in September 2024, a few weeks after Sesame Workshop had submitted its proposed judgement, SeaWorld allegedly notified Sesame Workshop that it would be shutting down Sesame Street Bay of Play in SeaWorld San Antonio after more than thirteen years of operation, according to the filing.
Never miss a story — sign up for PEOPLE's free daily newsletter to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories.
Later in 2025, SeaWorld allegedly “abruptly announced” the closure of Sesame Place San Diego without notifying Sesame Workshop, leading the organization to find out through a public announcement that SeaWorld released without their review. According to the complaint, this is another violation of their agreement.
“This abrupt closure was devastating to children and families who had already planned trips to the park after September 21, 2025, only to have their plans ruined with barely a week’s notice,” the filing adds.
The complaint alleges that SeaWorld’s “rogue” actions are “tarnishing the reputation of Sesame Workshop’s brand” and pose an "imminent threat” to the organization.
Read the full article here
