Sears Canada, Martha Stewart face off

Sears Canada paid some, but not all, of the money that Martha Stewart Living Omnimedia says it is owed in a dispute that involves unpaid royalties, cross-border marketing and a possible breach of contract.

On November 7, Martha Stewart Living filed a lawsuit against Sears Canada claiming unpaid royalties worth $1.82 million Canadian due on September 28, according to published reports. The following day, Sears Canada paid approximately $1.73 million US to settle the dispute. However, Martha Stewart Living said in an amended court filing that it is owed an additional $1.99 million US.

The court filing was made in the United State District Court, Southern District of New York, according to the reports.

In the court filing, Sears Canada reportedly contends that Martha Stewart Living violated its license agreement with the retailer when a US retail licensee of Martha Stewart Living sent catalogs advertising Martha Stewart merchandise to customers living in Canada. These were customers who had shopped at the licensee's stores in the US.

Martha Stewart Living says it hasn't approved the sending of the catalogs by the US retail licensee to Canada.

Calls for more information were directed to the court filing by Martha Stewart Living and not returned by Sears Canada.

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