J.C. Penney, Martha Stewart Living Shorten and Consolidate Partnership

In an announcement on Monday, Martha Stewart Living Omnimedia and J.C. Penney disclosed that the companies have come to terms on a new commercial agreement and revised their licensing and design partnership.

Under the terms of the new agreement, the two companies will partner for a shorter period on a "more focused range of product categories." Martha Stewart Living will get back the 11 million shares of MSLO stock (17% of the company) that J.C. Penney owns. J.C. Penney will also no longer have a seat on the MSLO Board.

Martha Stewart will continue to design window treatments and hardware, lighting, rugs, and holiday and celebration products, and will receive design fees and royalties. The revised agreement comes following a lawsuit from Macy's in December 2011 that the agreement between Martha Stewart Living and J.C. Penney violated Macy's exclusive rights to certain Martha Stewart-branded products.

Of the agreement, MSLO said in a statement: "We are pleased to announce this revised commercial agreement. We are designing excellent products for 2014, and we look forward to seeing them in stores and online at jcp.com."

"We are happy to be moving forward and continuing to provide our customers with quality products," added Mike Ullman, J.C. Penney's CEO.

The article J.C. Penney, Martha Stewart Living Shorten and Consolidate Partnership originally appeared on Fool.com.

Fool contributor Patrick Morris and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.