Jack White Productions (JWP) AG, the German label and publishing group, and its founder, composer and producer Jack White have gone their separate ways following a dispute.

The 66-year-old White has been dismissed from his job as managing director of White Records, JWP's subsidiary, in Berlin. His consulting agreement has also been terminated with immediate effect.

"We have knowledge that Jack White has been building up a parallel business, which is in direct competition with the business of JWP AG," claims JWP chairman Thomas M. Stein.

"In the interest of the shareholders and all artists of the JWP AG, we had no alternative (but to terminate the relationship) because of the massive breach of trust after so many years of cooperation. In addition, Jack White has a restraint-of-trade order imposed on him without further notice."

White rejects the accusations as untrue and is threatening to sue for damages. White had already left JWP AG's board of directors in January to set up White Records, a new division at JWP.

Jack White originally founded JWP in 1998. It is quoted on the Frankfurt stock exchange and its turnover in 2006 was 11.5 million euros ($15.9 million).

JWP's independent labels -- White Records, Empire, Trigger Records, Seven Days Music and VI Music -- feature German-speaking artists such as Austrian schlager star Hansi Hinterseer, and Mark Medlock, a winner of Germany's edition of "Pop Idol". JWP has a distribution contract with Sony BMG in Munich.

Jack White produced several international acts in Germany, including Laura Branigan, David Hasselhoff, Pia Zadora, Paul Anka and Engelbert Humperdinck in the 1980s and 1990s.