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New JCP, Martha accord 'in no way vindicates' Macy's position

New agreement for JCP and Martha Stewart

After J.C. Penney and Martha Stewart Living Omnimedia agreed to scale back their partnership, Martha Stewart Living said Tuesday in a statement that "royalties in this new agreement are significant and there is a lot of value to getting our stock back."

Under the new agreement, the department store will no longer be selling certain home and bath items designed by Martha Stewart in favor of a small assortment of products. It will also sell 11 million Martha Stewart shares it purchased back to the media and design company.

The announcement comes as the pair await a court ruling in the lawsuit that Macy's filed against them for violating its exclusive agreement with the domestic guru by signing a merchandising deal in late 2011.

(Read more: JC Penney, Martha Stewart scale back partnership)

Eric Seiler of Friedman Kaplan Seiler & Adelman, who is representing MSLO in the litigation with Macy's, said that the revised relationship between MSLO and J.C. Penney " in no way vindicates Macy's legal position."

Martha Stewart, founder of Martha Stewart Living Omnimedia, testifies at State Supreme court in New York.
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"Rather, it represents the evolution of the business relationship between Martha Stewart Living Omnimedia and J.C.Penney," Seiler said. "We are disappointed that Macy's initial reaction is to demand damages and retribution rather than to seek mutual business growth."

Martha Stewart Living Omnimedia added, "Looking forward, we are pleased to have another major retail partner to grow our Martha-branded merchandising business. The royalties in this new agreement are significant and there is a lot of value to getting our stock back. At the same time, we are looking forward to continuing to work with Macy's for many years to come."

—By CNBC's Katie Little with reporting by Nikole Yinger. Follow them on Twitter @KatieLittle and @NikoleYinger