Sesame Workshop, parent company of Sesame Street, has sued SeaWorld for allegedly withholding royalty payments and harming the brand’s reputation, according to a report from Reuters.
The two companies have had a long relationship, with SeaWorld being the exclusive U.S. theme park licensee for 45 years. United Parks & Resorts, SeaWorld’s parent company, has opened several Sesame Street theme parks over that period, along with other attractions featuring Sesame Street characters.
In the complaint filed this week, Sesame Workshop says that SeaWorld has been withholding royalty fees and closing attractions. In September, the complaint says, SeaWorld stopped paying royalties completely.
“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,” Sesame Workshop said in a statement.
Sesame Workshop is asking the court to terminate the licensing agreement with SeaWorld, order them to pay back royalties owed, and pay punitive damages of an unspecified amount.
This isn’t the first time the two have had legal issues. In 2022, SeaWorld failed to pay royalties for Sesame Place, outside of Philadelphia, PA. In 2024, SeaWorld opted not to open a third Sesame Street park, shut down another attraction, and temporarily closed Sesame Place in San Diego without informing Sesame Workshop. In September 2024, a judge ordered SeaWorld to pay Sesame Workshop over $11 million for breaching the contract.