J.C. Penney Permitted to Sell Martha Stewart Products, Macy's Appeals (Update!)

Last Friday, Judge Oing gave J.C. Penney the green light to temporary sell Martha Stewart designed products in order to avoid a estimated $100 million loss.  The products will be sold under the JCP Everyday label until the a final decision is rendered.  Had Judge Oing not allowed JCP to sell the products, JCP would be forced to find another way to dispose of the products and be faced with aisles of empty shelves in the home department.  However, JCP is still not allowed to sell Martha Stewart branded house ware products which it has not yet produced anyways.  

The Judge said Macy's had not proved irreparable harm and Macy's may still claim harm in the future if there is actual sales loss.  However, since JCP has not been able to sell any products, no harm has been done to Macy's.  JCP's attorney also argued that if in fact Macy's suffers loss then the Judge can make them whole and such harm would be reparable harm not irreparable harm.

Judge Oing in ruling for JCP also warned them, "[y]ou are to stay away from the Martha Stewart brand and label at all costs" with respect to advertising or marketing the products. 

On Monday, Macy's appealed the ruling stating the Judge's decision "erred in several significant respects."

Updated on April 17th:

Macy's requested a  temporary restraining order against JCP while it appeals Judge Oing's decision.  Richard T. Andrias, an associate justice at the New York State Supreme Court’s Appellate Division in Manhattan ruled during a closed hearing that JCP cannot sell Martha Stewart designed products until he rules on Macy's request for a TRO to be decided on Thursday.  In the meantime, the parties wait.

Updated on April 19th:

On Thursday, Justice Andrias rejected Macy's request for a temporary restraining order against JCP which gave JCP the go-ahead (again) to sell  Martha Stewart designed products but without marketing them as by Martha Stewart.

Macy's appeal of Judge Oing's decision is still pending before a five judge panel in appellate court which will be decided next week.  Macy's is hoping for the panel to overturn the ruling which allowed JCP to sell the home and bedding products in dispute and then pay Macy's damages if injury is proven.

(Click here for a recap!)

Read More:

NYTimes: J.C. Penney Wins Ruling in Dispute With Macy’s; Penney Sales of Stewart Goods Allowed

WSJ: Judge: JCP can sell Martha-designed goods for now; Penney Gets Go-Ahead on Certain Martha Stewart Products

Bloomberg: Macy’s Appeals Ruling on J.C. Penney Martha Stewart Sales