Department of Justice investigates SeaWorld: Walker ban brings federal scrutiny
Two weeks after we first reported that SeaWorld had begun banning walking devices with built-in seats, called walkers.
Fox – 35 Orlando
Sesame Workshop, known for the iconic children’s TV show “Sesame Street,” sued SeaWorld on Thursday to end a decades-long relationship, alleging the theme park operator withheld royalties and damaged the “Sesame Street” brand.
In a complaint filed in Manhattan federal court, Sesame Workshop said SeaWorld, a unit of United Parks and Resorts PRKS.N, has been the exclusive licensee for U.S. theme parks for 45 years and has opened several “Sesame Street”-themed parks and attractions featuring characters such as Big Bird, Cookie Monster and Elmo.
Sesame Workshop says SeaWorld has for years ignored its latest licensing agreement dating back to 2017, including withholding royalties and shutting down sites, including the temporary closure of Sesame Place San Diego.
The situation worsened in September when SeaWorld completely stopped paying royalties to Sesame Workshop and used the “ridiculous” accusation that the New York-based nonprofit had failed to invest in its brands as an excuse to end the relationship, according to the complaint.
The complaint said SeaWorld’s fraudulent retaliation poses an imminent threat to Sesame Workshop by harming Sesame Workshop’s reputation, using its intellectual property without permission, and “frustrating children and families” who had hoped to visit the closed site.
SeaWorld is known for its killer whales, Shamu. A United Parks spokesperson said in a statement that the Orlando, Florida-based company looks forward to “setting the record straight in court.” United Parks will change its name from SeaWorld Entertainment in 2024.
The lawsuit also seeks unspecified compensatory and punitive damages.
“United Parks & Resorts has repeatedly failed to meet its contractual obligations, forcing Sesame Workshop to file suit to protect our brand and the trust our family has in us,” a Sesame Workshop spokesperson said in a statement.
In September 2024, a federal judge in Orlando upheld an arbitration award that ordered SeaWorld to pay Sesame Workshop more than $11 million, including interest, for violating the license agreement. According to Sesame Workshop, SeaWorld did not make the payment until October 2025.
Report by Jonathan Stempel in New York. Edited by Mark Porter, Aurora Ellis, Cynthia Osterman. Editing: Louise Heavens
