A Martha Stewart Living Omnimedia Inc. unit has sued Sears Canada Inc., saying the Canadian company failed to pay required royalties for use of the trademark “Martha Stewart Everyday” on a line of merchandise.

The lawsuit, filed Nov. 6 in federal court in Manhattan by MSO IP Holdings Inc., alleges that Sears Canada failed in September to pay 1.82 million Canadian dollars ($1.95 million) in royalties. Sears Holdings Corp. owns a 70 percent stake in Sears Canada.