The claim is for HHO's infringement of Minder's recording of The Blues by Python Lee Jackson feat. Rod Stewart after HHO made the recording available to third parties without any rights - which were acquired by Minder in the late 1980's.
The track was part of the original recording session by Jackson and Stewart for John Peel's Dandelion Label.
In the claim Minder states that it "would normally only grant a licence to major record companies associated with Rod Stewart's career for albums endorsed by Rod Stewart himself (that is Warner Records or Universal (Phonogram)), or to a major record company producing a compilation of very well-known recordings by various artists. Such albums are of recognised quality and sell in large volume."
John Fogarty, director of Minder Records, said: "We would never license our recordings to HHO.
"It is unbelievable that a party with no rights whatsoever comes along and takes our recording and offers it to third parties.
"It is even more unbelievable that they have done this before and confirmed they had no rights".