Sesame Workshop lawsuit could threaten future of Sesame Place in Pennsylvania
By Rachael Lardani
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LANGHORNE, Pa. (WGAL) — A lawsuit against SeaWorld Parks and Entertainment could threaten the future of Sesame Place in Langhorne, Pennsylvania.
Sesame Workshop sued SeaWorld Parks & Entertainment and United Parks & Resorts, alleging they breached a licensing agreement governing the use of the Sesame Street brand at theme parks.
Sesame Workshop claimed that SeaWorld:
Failed to pay millions in royalties and other required fees Withheld royalty reports needed to calculate payments Failed to pay amounts tied to canceled or closed attractions Used Sesame Workshop’s intellectual property in marketing without approval Abruptly closed Sesame Place San Diego and shifted it to a seasonal schedule without notice to Sesame Workshop Damaged the Sesame Street brand through what Sesame calls retaliatory conduct How the dispute escalated The lawsuit said tensions grew after an earlier royalty dispute involving Sesame Place in Langhorne, Pennsylvania.
According to the complaint, SeaWorld previously disputed royalty obligations tied to the Pennsylvania park, but an arbitrator ruled in Sesame Workshop’s favor in 2023. The lawsuit said a federal court later confirmed that award and ordered payment with interest.
Sesame Workshop cited the earlier Langhorne dispute as part of a broader pattern of nonpayment and conflict.
How this affects Sesame Place in PA The lawsuit appears to affect Sesame Place in Langhorne mainly in two ways:
It is part of the history of the dispute. The complaint points to the Langhorne royalty fight as an example of the companies’ earlier disagreement over financial obligations. The park’s long-term branding relationship could be affected. Sesame Workshop is asking the court to allow it to terminate the licensing agreement. If that happens, it could eventually affect how the Sesame Street brand is used at parks, including the Pennsylvania location. The complaint does not say that Sesame Place in Pennsylvania is closing. The more immediate closure allegation in the lawsuit involves Sesame Place San Diego.
More park-related allegations Sesame Workshop also alleges SeaWorld:
Backed out of plans for a third standalone Sesame Place park Shut down Sesame Street Bay of Play in San Antonio Closed Sesame Place San Diego on short notice in September 2025 Sent unapproved marketing materials using Sesame branding and characters CLAIMS | Sesame Workshop brings claims for breach of contract, unfair competition under New York law and a declaratory judgment that Sesame Workshop did not breach the agreement.
What Sesame Workshop wants Sesame Workshop is asking the court for:
A ruling that SeaWorld breached the agreement A ruling that Sesame Workshop did not breach the agreement Permission to terminate the agreement Damages, including unpaid sums, royalties, and termination fees Punitive damages under unfair competition law Interest, attorneys’ fees, and other relief STATUS | The complaint states Sesame Workshop notified SeaWorld of the alleged breaches in November 2025, held discussions in January 2026, and went to mediation on March 12, 2026, but the dispute was not resolved.
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