The term `` muppet '' is trademarked and owned by The Walt Disney Company . Puppets used in Sesame Street are still called muppets at times , and have special permission to use that name from The Walt Disney Company . The legal trademark on the term `` Muppet '' is currently held by The Muppets Holding Company ( now The Muppets Studio , LLC , a division of The Walt Disney Company ) ; although Sesame Workshop and The Jim Henson Company continue to use the term on their characters with certain permissions .