Reports last Thursday suggested that Ghostface Killah had won a legal judgement for over $158,000 (£98,000) against RZA's Wu-Tang Productions regarding unpaid royalty fees.
However, RZA has since told Allhiphop that the case "is not closed yet", adding: "The judgement has not been entered yet, and we are appealing the case."
RZA insists that he and the other members of the Wu-Tang Clan originally signed a contract permitting whoever produced their material to collect 50% of royalties as a producer, with the remaining half to be split between the group themselves.
He added that if he was forced to meet Ghostface Killah's demands for unpaid royalties, it could lead to a number of copycat cases from other rap acts.
"For them to say that's wrong, and the producer shouldn't get 50%, that means every producer in this industry can now have a potential claim against them from an artist. Remember, we don't sign contracts in studios."
RZA went on to defend his input into Wu-Tang Clan songs as a producer.
"They've made millions based on my beats," he affirmed. "Songs like 'Bring Da Ruckus' I made two years before they even rapped on it. Songs like 'Can It All Be So Simple', anybody could have got on that. It had the hook, beat and the lift from the beginning. They threw their verses on it."