Premium Latin, the indie label home to urban bachata chart-topper Aventura, and its Italian licensee are suing each other for alleged breach of contract.

Premium's suit, filed in October in federal court in New York, alleges that Naples, Italy-based Ferrante Productions' Planet Records breached its license from Premium by exploiting Aventura's recordings outside its
contractually authorized territories of Italy, Vatican City and the Republic of San Marino.

In 2003, Planet Records, which specializes in tropical music, became the first label to license Aventura in Europe. "Obsesión," a song from
Aventura's 2002 album "We Broke the Rules," hit No. 1 on Billboard's
Eurochart.

Aventura went on to become a very hot commodity in the U.S. and Latin America; it was the top winner at the 2010 Billboard Latin Music Awards, on the strength of its latest album, "The Last," which was the best-selling Latin album in the U.S. in 2009. The group sold out four nights at Madison Square Garden earlier this year, and starts the second leg of its tour June 16 at Chicago's Allstate Arena.

The suit seeks unspecified damages and a judgment declaring Planet's license rescinded as of July 17, 2009.

Ferrante Productions countersued in December, alleging that Premium reneged on an agreement to allow Planet Records to sell Aventura's recordings on iTunes' non-U.S. stores—other than "The Last," which Planet says it was allowed to sell only on iTunes' Italy store.

Premium Latin GM Marti Cuevas says there haven't been any settlement talks yet in the case. "We simply wanted to clarify that Planet ONLY had a license for Italy and nowhere else," Cuevas tells Billboard.

Roberto Ferrante, president/CEO of Planet Records and Ferrante Productions, called Premium's suit "a worried response to the success Planet Records is having with other artists in Europe," such as Omega and Prince Royce.

Ferrante added that he would use Premium's press release announcing the lawsuit "as proof of harm to [our] image caused by Premium."