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

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

By Karen Freifeld

NEW YORK (Reuters) - Macy's Inc has asked a New York court for a temporary restraining order to block rival J.C. Penney Co Inc 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.

Macy's sued Penney and Stewart's company, Martha Stewart Living Omnimedia , 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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