NEW YORK, United States — J.C. Penney Co. amended its agreement with Martha Stewart Living Omnimedia Inc. to a narrower range of products and said it would give up its seat on the homemaking maven's board.

Martha Stewart Living will continue to design branded window treatments, lighting, rugs and holiday goods for J.C. Penney, the companies said today in a statement. Martha Stewart Living will receive fees, royalties and the 11 million shares of its stock that J.C. Penney now holds, they said.

The agreement between J.C. Penney and Martha Stewart Living has been at the center of a legal dispute with Macy’s Inc., which sued the companies last year, saying it had exclusive rights to sell Stewart-designed items in categories including bedding and cookware. After the suit, J.C. Penney rebranded the Stewart items in those disputed categories “JCP Everyday.” Macy’s then pushed for the sales of those items to be stopped because they were designed by Stewart.

Macy’s claims for damages from J.C. Penney and Martha Stewart Living remain before the court, Jim Sluzewski, a spokesman for Cincinnati-based Macy’s, said today in an e-mailed statement.

J.C. Penney, based in Plano, Texas, fell 8.3 percent to $6.42 at the close in New York, before the statement was released. Martha Stewart, based in New York, dropped 0.4 percent to $2.26.

By Matt Townsend; editors: Kevin Orland, Robin Ajello