
Rex Features
Blunt's Custard label - run by Perry - has filed a lawsuit against Atlantic Records, a subsidiary of Warner, citing breach of contract and seeking £2.5 million ($5 million) in lost royalties.
The suit claims that Custard signed Blunt and produced his album, before delivering it to Atlantic for distribution.
The suit added: "Atlantic's wrongdoing follows the far too familiar scenario involving a large multinational corporate record company which takes advantage of a small, independent production company."
Atlantic has grossed more than £50 million ($100 million ) in sales from Blunt, the suit claimed.
Warner spokesman Will Tanous denied there had been any breach of contract on Atlantic's part, saying: "Custard has always been and will continue to be compensated in accordance with the terms of its contractual arrangement with Atlantic."
Perry, who once fronted rock band 4 Non Blondes, has forged a career behind the scenes in the music business by writing and producing hits for the likes of Gwen Stefani, Pink and Christina Aguilera.
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