New York -- Macy's on Friday won a preliminary injunction against Martha Stewart Living Omnimedia that would prevent it from selling some of its products at the chain.
Macy's Inc. sued Martha Stewart Living in January after J.C. Penney acquired a 16.6% stake in Martha Stewart Living and announced plans in December to open Martha Stewart mini-shops beginning next year. Macy’s said that it had exclusive rights to certain categories of the Martha Stewart brand until 2018.
In issuing the preliminary injunction, New York State Supreme Court Justice Jeffrey Oing said Macy's had shown likelihood of ultimate success in its lawsuit.
“The scale tilts in favor of Macy's,” the judge said.
Martha Stewart Living said it will comply with the restrictions but still planned to go ahead with its deal with J.C. Penney in the first quarter of next year.
“Nothing about today’s ruling changes that,” the company said in an emailed statement, in an Associated Press report.
Martha Stewart Living also said it would keep defending its position.
“We continue to believe that we have not breached our agreement” with Macy’s, the company said.
The parties are due back in court in November.