NEW YORK, March 12 (Reuters) - 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 ), 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, however, 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.

"SeaWorld's rogue, retaliatory actions pose an imminent

threat" to Sesame Workshop by tarnishing its reputation, using

its intellectual property without permission and "disappointing

children and families" who hoped to visit the closed sites, the

complaint said.

"United Parks & Resorts ( PRKS ) has repeatedly failed to honor its

contractual obligations, leaving Sesame Workshop no choice but

to pursue litigation to protect our brand and the trust that

families place in it," a Sesame Workshop spokesperson said in an

emailed statement.

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.