NEW YORK (Reuters) - A New York appeals court ruled on Tuesday that J.C. Penney Co Inc can continue to sell a line of Martha Stewart home goods it introduced without her name pending the outcome of a trial with Macy's Inc .

The Plano, Texas, retailer began selling the goods last week under the brand "JCP Everyday."

On Tuesday, the New York State Supreme Court's Appellate Division, First Department, denied Macy's request for a preliminary injunction blocking sale of the goods while a court battle continues over rights to the products.

(Reporting by Karen Freifeld; Editing by Gerald E. McCormick)

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