SAN FRANCISCO, Oct 30 (Reuters) - Clothing retailer New York & Co Inc (NWY.N) has sued J.C. Penney (JCP.N) and the department store's advertising agency over a new campaign it claims infringes a trademark and confuses shoppers.

J.C.Penney

In a complaint filed on Friday 30 October in U.S. District Court for the Southern District of New York, New York & Co seeks injunctive relief over J.C. Penney's use of the mark "NYC Style" in a new campaign.

Also named as a defendant in the lawsuit is Saatchi & Saatchi, the department store's ad agency.

New York & Co, which operates some 580 U.S. stores, claims it has used "NY Style" in its marketing since August 2008 and has spent $6 million over such efforts. The lawsuit says the new campaign from J.C. Penney will confuse shoppers, especially since the department store sells merchandise at lower prices than New York & Co.

The lawsuit claims that J.C. Penney posted a billboard with the "NYC Style" ad in New York's Time Square in July that touted the opening of the retailer's Manhattan store. The company operates over 1,000 stores.

"It recently has come to the attention of plaintiffs that defendants are planning to relaunch their 'NYC style. JCP prices' advertising campaign for the upcoming holiday season," read the complaint.

A J.C. Penney representative was not immediately available for comment.

(Reporting by Alexandria Sage; Editing Bernard Orr)