Sesame Street Sues SeaWorld

Nonprofit Sesame Workshop claims unpaid royalties, contract breaches, and brand damage
Posted Mar 13, 2026 2:32 PM CDT
Updated Mar 13, 2026 2:55 PM CDT
Sesame Workshop Sues SeaWorld
Sesame Street's Big Bird participates in the ceremonial lighting of the Empire State Building in honor of Sesame Street's 50th anniversary on Friday, Nov. 8, 2019, in New York.   (Photo by Evan Agostini/Invision/AP, File)

After decades together, Big Bird and Shamu are heading to court. The nonprofit Sesame Workshop has sued SeaWorld and its parent company United Parks & Resorts, accusing the theme-park operator of mishandling the Sesame Street brand and failing to pay royalties tied to Sesame-themed attractions, reports NBC News. In the lawsuit filed in federal court in New York, Sesame Workshop says SeaWorld ignored a 2017 licensing agreement that allowed it to run Sesame-themed parks and attractions featuring characters like Elmo and Big Bird. According to the complaint, SeaWorld stopped paying royalties last year and closed or scaled back some Sesame attractions—moves the nonprofit says damaged its family-friendly reputation and disappointed visitors, per Reuters.

The dispute has been simmering for years. A judge previously upheld an arbitration ruling requiring SeaWorld to pay more than $11 million for earlier breaches, money that Sesame Workshop says wasn't paid until 2025. Now the group is seeking damages—and possibly an end to their deal. "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," says a Sesame Workshop spokesperson. A United Parks spokesperson says the company is "aware of the lawsuit filed by Sesame Workshop and look[s] forward to setting the record straight in court."

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