--- title: Sesame Street Loses Lawsuit Against Happytime Murders description: The nonprofit behind Sesame Street has lost its lawsuit against the creators of Melissa McCarthy's puppet comedy The Happytime Murders. canonical: https://time.com/5297032/sesame-street-lawsuit-happytime-murders/ author: Megan McCluskey article:opinion: false article:content_tier: free article:published_time: 2018-05-31T15:28:39.000Z article:modified_time: 2023-12-12T19:35:26.000Z article:section: Entertainment og:title: Sesame Street Lost a Legal Battle Against This Puppet Movie og:description: 'Happytime Murders' hits theaters in August og:url: https://time.com/5297032/sesame-street-lawsuit-happytime-murders/ og:site_name: TIME og:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt80f7d14f33708511/69888e2f196cf47b2303b154/sesame-street-new-puppet.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 og:image:width: 1200 og:image:height: 675 og:image:alt: Sesame Street And HBO Host Free Museum Day At The New Children's Museum Of San Diego With A Special Performance By Elmo And Friends og:type: article twitter:card: summary_large_image twitter:title: Sesame Street Lost a Legal Battle Against This Puppet Movie twitter:description: 'Happytime Murders' hits theaters in August twitter:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt80f7d14f33708511/69888e2f196cf47b2303b154/sesame-street-new-puppet.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  # Sesame Street Lost a Legal Battle Against Melissa McCarthy's R-Rated Puppet Movie _Happytime Murders_ > Sponsored content. 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Terms and conditions apply. * Savings buckets are a feature of Ally Bank's Savings Account. * No ATM fees from Ally Bank at Allpoint and Moneypass ATMs plus we reimburse for fees charged by other ATM owners nationwide up to $10 per statement cycle. * Early direct deposit offers eligible direct deposits up to two days sooner. * Spending buckets are a feature of Ally Bank's Spending Account.  by [Megan McCluskey](https://time.com/author/megan-mccluskey/)  ## Megan McCluskey Staff Writer Updated: Dec 12, 2023 7:35 PM UTCPublished: May 31, 2018 3:28 PM UTC  Sesame Street characters Rosita (L) and Elmo perform on stage at Sesame Street and HBO Host Free Museum Day with a special performance by Elmo and Friends at The New Children's Museum on January 9, 2016 in San Diego, California. Sesame Street characters Rosita (L) and Elmo perform on stage at Sesame Street and HBO Host Free Museum Day with a special performance by Elmo and Friends at The New Children's Museum on January 9, 2016 in San Diego, California.FilmMagic—Getty Images  by [Megan McCluskey](https://time.com/author/megan-mccluskey/)  ## Megan McCluskey Staff Writer Updated: Dec 12, 2023 7:35 PM UTCPublished: May 31, 2018 3:28 PM UTC The nonprofit behind [_Sesame Street_](http://time.com/4848929/sesame-street-beastie-boys-sabotage-mashup/) has lost a legal battle in the fight to stop the creators of [Melissa McCarthy’s](http://time.com/5252310/christina-aguilera-carpool-karaoke/) raunchy puppet comedy _The Happytime Murders_ from using the tagline “No sesame. All street.” A New York Judge ruled on Wednesday that distributor STX Productions can continue to use the tagline, “No sesame. All street,” to promote the R-rated flick despite Sesame Workshop’s claim that the marketing campaign creates public confusion about _Sesame Street_‘s wholesome brand. U.S. District Judge Vernon Broderick said in his ruling that the slogan is actually a “humorous, pithy way” to distinguish _Happytime Murders_ from the beloved children’s show, according to [_New York Daily News_](http://www.nydailynews.com/entertainment/happytime-murders-wins-legal-fight-sesame-street-article-1.4017820). For their part, the makers of _Happytime_—which was directed by Brian Henson, son of Muppets creator Jim Henson—were quick to make their admiration for _Sesame Street_ known via a statement attributed to puppet lawyer Fred, Esq. “We fluffing love _Sesame Street_ and we’re obviously very pleased that the ruling reinforced what STX’s intention was from the very beginning—to honor the heritage of The Jim Henson Company’s previous award-winning creations while drawing a clear distinction between any Muppets or _Sesame Street_ characters and the new world Brian Henson and team created,” it read. _The Happytime Murders_ hits theaters Aug. 17. **Correction**: The previous version of this story misstated the status of the lawsuit brought by Sesame Street. 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