Overview
- Sesame Workshop filed a federal complaint in the Southern District of New York seeking to terminate the 2017 license and recover unpaid royalties plus compensatory and punitive damages.
- The complaint alleges United Parks stopped all royalty payments in September 2025 and used Sesame Street intellectual property without required approvals through unapproved marketing.
- Operational grievances include an abrupt closure and shift to seasonal operations at Sesame Place San Diego and locking Sesame Workshop out of shared approval tools.
- A prior arbitration award exceeding $11 million was confirmed by a federal judge in September 2024 and, according to Sesame Workshop, was not paid by SeaWorld until October 2025.
- United Parks says it will contest the claims and "set the record straight in court"; if the license is terminated, SeaWorld could be forced to retheme or remove Sesame attractions, though SeaWorld Orlando says Sesame Street Land is operating normally for now.