Macy's is trying to block Amazon from advertising atop its Herald Square store

As people stay at home to stop the spread coronavirus in New York City, lights shine near Macy's Herald Square.
Macy's is involved in a legal dispute with its landlord in order to stop Amazon from placing a billboard on its most famous flagship store.

The Kaufman Organization is being asked by the department store chain to stop any deal with Amazon for the billboard that will be atop the historic Herald Square location.

Macy claims that online advertisements by its competitor will cause it "immeasurable" damage in a state court lawsuit.

Macy's stated in court papers that "the damages to Macy's customer goodwill and image, reputation, and brand should a prominent internet retailer (especially Amazon), advertise on the billboard is impossible to calculate."

Macy's has been advertising on the billboard more than 50 years. The lease for the space was terminated in August. Macy claims that Kaufman was in negotiations with Amazon at that time.

Macy's stated that its original lease for the billboard space contained a clause that prohibited other retailers from advertising on it indefinitely.

CNBC reached out to representatives of Amazon and Kaufman Organization for comment.

Macy's spokeswoman said that the billboard sign was placed on the building next to the flagship store at 34th Street and Broadway since the 1960s.

She stated that Macy's still has rights to advertise at this location. "We anticipate realizing the benefits of the rights and have requested the court to protect them. The company won't comment further as the matter is still in litigation.

Crain's New York reported the court battle for the first time.