Sesame Street Producer Sues SeaWorld Over Licensing Revenues

Iconic children's show claims theme park operator failed to pay millions in royalties.

Mar. 13, 2026 at 2:40pm

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Sesame Workshop, the nonprofit organization behind the iconic children's television show Sesame Street, has filed a lawsuit against SeaWorld Parks & Entertainment Inc. alleging the theme park operator failed to fulfill their most recent licensing agreement by not paying millions of dollars in royalties.

Why it matters

The lawsuit highlights the ongoing business relationship and licensing agreements between major entertainment brands and theme park operators, which can be lucrative but also contentious when disputes arise over revenue sharing and contract terms.

The details

According to the lawsuit filed in the U.S. District Court for the Southern District of New York, Sesame Workshop claims SeaWorld and its parent company United Parks & Resorts engaged in "rogue, retaliatory actions" that pose an "imminent threat" to the Sesame Street brand. The two organizations have had a business relationship since 1980 when they first entered into a licensing agreement.

  • The lawsuit was filed on March 13, 2026.

The players

Sesame Workshop

The nonprofit organization that produces the iconic children's television show Sesame Street.

SeaWorld Parks & Entertainment Inc.

A theme park operator that has had a licensing agreement with Sesame Workshop since 1980.

United Parks & Resorts Inc.

The parent company of SeaWorld Parks & Entertainment.

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What they’re saying

“SeaWorld's 'rogue, retaliatory actions pose an imminent threat' to Sesame Workshop's brand”

— Sesame Workshop

The takeaway

This lawsuit highlights the complex business relationships and licensing agreements between major entertainment brands and theme park operators, which can become contentious when disputes arise over revenue sharing and contract terms.