But Sesame Workshop, which supports "Sesame Street," didn't see it as a laughing matter.

"Sesame Workshop is a nonpartisan, nonprofit organization and we do not endorse candidates or participate in political campaigns," the organization said in a terse, two-sentence statement. "We have approved no campaign ads and, as is our general practice, have requested that the ad be taken down."

Obama campaign spokesman Ben LaBolt said the campaign was reviewing Sesame Workshop's concerns.

"Reviewing"? What's to review? They used a copyrighted (and probably also trademarked) character in a way that clearly crossed several lines, without permission, and got publicly called on it. They need to yank the ad ASAP. Not "review".