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Sesame Workshop sues SeaWorld over unpaid royalties

'Sesame Street' producer seeks to end its licensing agreement with SeaWorld

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Sesame Workshop, the nonprofit behind the Sesame Street brand, has sued SeaWorld parent company United Parks & Resorts.

The lawsuit alleges that United Parks & Resorts has not been paying royalties and that the company shortened the operations of a Sesame Place theme park with limited notice.


Sesame Workshop filed the lawsuit on Thursday (12 March) in federal court in New York and is seeking to terminate its licensing agreement with United Parks & Resorts.

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"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," said Sesame Workshop in a statement, via NBC News.

United Parks & Resorts, formerly SeaWorld Entertainment, has opened two standalone Sesame Place theme parks in partnership with Sesame Workshop, as well as four Sesame Street lands.

However, the lawsuit alleges that in 2022, SeaWorld refused to pay millions of dollars in royalties for the Sesame Place park in Philadelphia.

Sesame Workshop seeks to end deal

Sesame Workshop alleges that in 2024, SeaWorld decided not to open a third Sesame Place park and closed the Sesame Street Bay of Play in SeaWorld San Antonio.

Additionally, the lawsuit alleges that Sesame Place in San Diego was closed and transitioned to a seasonal schedule without Sesame Workshop being notified.

Sesame Place San Diego opened in 2022 as the second Sesame Place theme park in the US, after the first location in Philadelphia.

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"SeaWorld has engaged in a series of wilful, unilateral retaliatory breaches designed to undermine the parties’ relationship and harm Sesame Workshop," the lawsuit reads.

A spokesperson for United Parks & Resorts said in a statement: "We are aware of the lawsuit filed by Sesame Workshop and look forward to setting the record straight in court."

In more news, Universal Studios Japan has announced it will permanently close its Sesame Street-themed area to make way for new experiences.

Images courtesy of Sesame Workshop and United Parks & Resorts