Kmart Sues Martha Over Royalties

Discussion
Feb 16, 2004
George Anderson

By George Anderson


If Martha Stewart didn’t have enough on her plate dealing with her securities fraud case, she does now.


Kmart announced on Friday it is suing Martha Stewart Living Omnimedia Inc. for $4.5 million in disputed royalties and $2 million in advertising with Ms. Stewart’s media properties.


According to a Reuters’ report, the retailer claims in a filing made with the U.S. Bankruptcy Court in Chicago, Ms. Stewart’s company is “victimizing Kmart by forcing
it to pay excessive royalties and advertising dollars based on an untenable interpretation of the agreement.”


Martha Stewart Living Omnimedia claims Kmart’s action is an attempt by the retailer to reduce royalty payments as it continues to struggle.


Kmart, for its part, continues to claim sales of Martha Stewart Everyday products are strong despite the legal action taken.


Moderator’s Comment: What do you make of Kmart’s suit against Martha Stewart Living Omnimedia?


Business imitates art. As they said in The Godfather movies, “It’s nothing personal. It’s only business.” George
Anderson – Moderator

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