New York —Martha Stewart Living Omnimedia, through its MSO IP Holdings Inc. entity, has brought suit against Sears Canada for breach of contract, in a dispute over licensing royalties.

At issue is about $2 million in delinquent royalty payments for Sears Canada's use of the Martha Stewart Everyday license.

MSLO did confirm wire reports but made no direct comment on the lawsuit, which was filed in the U.S. District Court for the Southern District of New York (Manhattan).

The Martha Stewart Everyday license is carried exclusively in the United States by Kmart, a division of Sears Holdings, the majority stakeholder of Sears Canada.