Macy's CEO testifies in fight over Martha Stewart

NEW YORK (AP) - Macy's CEO Terry Lundgren testified on Monday he hung up on home diva Martha Stewart after she called to inform him on Dec. 6, 2011 that the company bearing her name had inked a deal with J.C. Penney to open shops within most of the chain's stores.

He hasn't spoken to her since, even though the two used to be good friends.

The testimony comes as Macy's Inc. and J.C. Penney Co. duke it out over the partnership with Martha Stewart Living Omnimedia. The trial, which began Wednesday, focuses on whether Macy's has the exclusive right to sell Martha Stewart branded cookware, bedding and other products. Other key witnesses expected to take the stand this week include Penney's CEO Ron Johnson and Martha Stewart.

Lundgren testified Macy's had built the Martha Stewart brand to be the biggest in its home business. Under Lundgren's leadership, Macy's has focused on building exclusive brands that are not carried by rivals.

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