It’s the case that will never end. The latest in the fight between Macy’s Inc., J.C. Penney Co. Inc. and Martha Stewart Living Omnimedia (MSLO) is brought to you by Justice Jeffrey Oing. Or, more accurately, Macy’s appeal of Oing’s Friday ruling, which would allow J.C. Penney to sell unbranded Martha Stewart products in its stores.
Oing’s decision last week allows J.C. Penney to sell Martha Stewart merchandise as long as it doesn’t include her name. But yesterday, Macy’s shot back with an appeal, claiming the Oing “erred in several significant respects.”
The drama in a nutshell: The battle began back in 2011 when J.C. Penney announced it purchased 17 percent of MSLO and planned to open Martha Stewart Living shops within its stores. In early 2012, Macy’s sought preliminary injunction against MSLO to block the deal. Macy’s claimed MSLO breached its contract with Macy’s when it entered into the agreement because Macy’s had an exclusive right with MSLO to sell Martha Stewart Living products. MSLO and J.C. Penney argued that the deal didn’t breach MSLO’s contract with Macy’s because they say that contract allows MSLO to sell Martha Stewart Living products in stand-alone stores—and they say the shops within J.C. Penney fall into that category. Macy’s didn’t buy it, and filed suit against J.C. Penney in August.
Representatives of MSLO and J.C. Penney didn’t respond to Thomson Reuters requests for comment.
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