Macy's Fights Legal Battle With Amazon To Safeguard Iconic Billboard Space

Macy's Inc. (M) is in the midst of a legal tussle with its landlord, the Kaufman Organization, to stop Amazon Inc. (AMZN) from using a billboard atop its flagship store at the Herald Square location.

The Kaufman Organization is planning to sign a deal with the online retailer for using the billboard on top of the building.

Macy's filed a lawsuit against the deal, stating that the latter would cause irreparable damage to its brand name and eventually business.

In the court statement, Macy's said, "The damages to Macy's customer goodwill, image, reputation and brand should a prominent online retailer (especially Amazon) advertise on the billboard are impossible to calculate."

Macy's business has been advertised on the billboard for more than half a century. The lease for the space expired in August and according to Macy's, the Kaufman-Amazon deal was on track by that time.

Macy's said in the court that its original lease for the billboard had a provision, which prevented other retailers from advertising there.

In an interview to CNBC, a Macy's spokeswoman said, "Since the early 1960s Macy's has placed a billboard sign on the building adjacent to our flagship store at the corner of Broadway and 34th Street. Macy's continues to have rights relating to advertisements at that location."

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