By Jonathan Stempel
NEW YORK, March 12 (Reuters) - SeaWorld was sued on Thursday by Sesame Workshop, which is seeking to end their decades-long relationship after the theme park operator allegedly breached its obligations to promote the "Sesame Street" brand.
Sesame Workshop said SeaWorld, a unit of United Parks & Resorts, has been its exclusive U.S. theme park licensee for 45 years, opening several "Sesame Street"-themed parks and attractions featuring characters from the iconic children's TV show, including Big Bird, Cookie Monster and Elmo.
But in a complaint filed in Manhattan federal court, Sesame Workshop said SeaWorld has for a few years ignored the most recent licensing agreement, which dates from 2017, withholding royalties and closing sites, including 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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"SeaWorld's rogue, retaliatory actions pose an imminent threat" to Sesame Workshop by tarnishing its reputation, going "rogue" in using its intellectual property, and "disappointing children and families" who hoped to visit the closed sites, the complaint said.
"Sesame Workshop is left with no choice but to seek termination of the agreement and all related damages and termination fees," the complaint added.
United Parks and SeaWorld, both based in Orlando, Florida, did not immediately respond to requests for comment after market hours.
The lawsuit also seeks unspecified compensatory and punitive damages.
In September 2024, a federal judge in Orlando upheld an arbitration ruling that required SeaWorld to pay Sesame Workshop more than $11 million, including interest for breaching their licensing agreement. SeaWorld didn't pay until October 2025, Sesame Workshop said.
(Reporting by Jonathan Stempel in New York; Editing by Mark Porter and Aurora Ellis)