April 16, 2013 / 8:01 PM / in 5 years

Macy's seeks to block Penney from selling certain Martha Stewart goods

NEW YORK (Reuters) - Macy’s Inc M.N has asked a New York court for a temporary restraining order to block rival J.C. Penney Co Inc JCP.N from selling unbranded Martha Stewart goods in its stores, the latest twist in a legal battle between the two department store chains over rights to the domestic doyenne’s products.

A man with a Macy's bag walks past the J.C. Penney's store in New York, April 11, 2013. REUTERS/Brendan McDermid

Macy’s sued Penney and Stewart’s company, Martha Stewart Living Omnimedia MSO.N, after they announced a deal to launch Martha Stewart stores within Penney stores.

Macy’s claimed it has the exclusive right to sell Martha Stewart goods in certain categories such as bedding, bath and tableware under a 2006 agreement that lasts through 2018.

Previously, a judge had barred Penney from selling the disputed goods under a Martha Stewart label. Last Friday, he denied a request by Macy’s to expand that ban to include products that would be branded “JCP Everyday,” a decision that Macy’s appealed on Monday.

Penney declined comment on Tuesday.

Reporting By Karen Freifeld; Writing by Dhanya Skariachan and Noeleen Walder; Editing by Gary Hill

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