The murder-mystery film in question is set in a world where humans and puppets co-exist, much like previous The Muppets movies and the show Sesame Street.
'Defendants do not own, control or have any right to use the SESAME STREET mark.
The creators of Sesame Street are suing over a new movie trailer that they claim suggests certain puppets live depraved, brutal lives when offstage - snorting hard drugs through licorice straws, selling sexual favors to humans and succumbing to gun violence. "While the trailer at issue is nearly indescribably crude, Sesame is not trying to enjoin defendants' promotion or distribution of their movie", the suit states.
An R-rated comedy set to be released this summer is facing a legal battle over its marketing that has partially relied on the children's program Sesame Street.
Sesame Workshop, the educational organisation behind the TV show, filed the lawsuit against the film's producers, STX Productions, in NY.
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In the first trailer for the film, McCarthy - who plays a police detective - can be seen exchanging dialogue with a puppet who uses vulgar language and makes sexual references to her, which the 47-year-old actress responds to by punching him.
The complaint goes on to allege that "a parade of social media posts, emails and public comments" indicates that the tagline "has confused and appalled viewers because of what they believe to be a serious breach of trust by Sesame by supporting this movie".
STX has since issued the following statement attributed to its puppet representative Fred, Esq.
"We're incredibly pleased with the early reaction to the film and how well the trailer has been received by its intended audience".
"While we're disappointed that 'Sesame Street' does not share in the fun, we are confident in our legal position", it added.
The R-rated puppet-people film stars Melissa McCarthy, and was directed by Brian Henson, the son of Muppets creator Jim Henson.
The movie is set to premiere in the U.S. on August 17.
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