If Orlando residents want to get a product they saw in Martha Stewart Living, they head to Macy's, the store that exclusively sells certain lines of Martha Stewart's home, bath and cooking products. Or, wait - do they go to Macy's or to rival department store J.C. Penney?
Consumer confusion like that is a big part of the reason why Macy's has sued Martha Stewart's company, Martha Stewart Living Omnimedia. Essentially, it is a contract dispute. Macy's claims Martha Stewart Living Omnimedia had agreed to sell certain products only through Macy's and is not happy that it is now selling the same or similar products through J.C. Penney.
Neither Martha Stewart Living Omnimedia nor J.C. Penney has commented on the lawsuit, but Macy's claims it has a 2006 contract with Martha Stewart Living Omnimedia by which it would be the only company to sell certain Martha Stewart products. Macy's said it recently renewed the agreement's exclusivity provision, so until 2018 it should be the only store selling Stewart's products.
Now, without knowing all the details, we cannot say anything for certain, but it is not inconceivable that Martha Stewart Living Omnimedia agreed to develop a new line for J.C. Penney so it could sell products both through J.C. Penney and Macy's, but Macy's thinks the products are too similar and so amount to a breach of contract. (As we said, that is just a likely scenario, not a fact.)
Given how popular Martha is and how well many of her products sell, it is probable that Macy's is going to put up a fight here. It will be interesting to see how this lawsuit develops.
Source: Reuters, "Macy's sues Martha Stewart Living," Jan. 23, 2012
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