SeaWorld accused of withholding 'Sesame Street' royalties in lawsuit

Sesame Workshop is suing SeaWorld, accusing the theme park operator of withholding royalties and undermining the 'Sesame Street' brand.

Sesame Workshop, known for the iconic children's TV show "Sesame Street", sued SeaWorld on Thursday to end their decades-long relationship, accusing the theme park operator of withholding royalties and undermining the "Sesame Street" brand.

In a complaint filed in Manhattan federal court, Sesame Workshop said SeaWorld, a unit of United Parks & Resorts PRKS.N, has been its exclusive U.S. theme park licensee for 45 years, opening several "Sesame Street"-themed parks and attractions featuring characters including Big Bird, Cookie Monster and Elmo.

Sesame Workshop said SeaWorld has for a few years ignored the most recent licensing agreement, which dates from 2017, including by withholding royalties and closing sites, including the temporary closure of Sesame Place San Diego.

According to the complaint, matters worsened in September when SeaWorld stopped paying royalties to Sesame Workshop altogether, and as a pretext to end the relationship made the "preposterous" accusation that the New York-based nonprofit failed to invest in its own brand.

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