Legal action between rock star Courtney Love and record giant Universal Music has been delayed as mediation talks continue.

The outcome of the breach of contract case in Los Angeles will be closely watched by both music industry bosses and artists.

Stars are currently forming coalitions to challenge the terms of recording contracts, claiming they are "indentured servitude".

While we are closer, we are not close [to a settlement]

Barry Capello Love's lawyer

Lawyers for Love - whose band Hole split up recently - and the music giant met on Monday with a court-appointed mediator.

The trial delay was imposed on Tuesday due to a crowded legal schedule.

Love's lawyer Barry Cappello said mediation would continue.

"Mediation will continue, but while we are closer, we are not close [to a settlement]."

Cappello has previously said a settlement was unlikely.

Undelivered albums

In December 1999, Love, the widow of Nirvana singer Kurt Cobain, decided to stop recording for Geffen, which is owned by Universal Music.

Universal Music is the world's largest music company, and a part of France's Vivendi Universal conglomerate.

Last year, Geffen/Universal Music sued Love, seeking millions of dollars in damages for five undelivered albums. Love made a counter-claim, also in 2001.

Love found fame after marrying Kurt Cobain

Universal Music's complaint and Love's cross-complaint will be tried together, lawyers for both sides said on Tuesday.

While several of Love's key claims have already been dismissed, the case is being watched as a growing number of artists challenge record labels over contract terms they say rob them of their rightful income from records.

On 30 May, Los Angeles County Superior Court Judge Fumiko Wasserman ordered the lawyers to meet with a mediator prior to appearing in court on 11 June.

The trial could now start on Tuesday but lawyers have been asked to be prepared to begin trial proceedings, such as jury selection earlier.

Love and Eagles frontman Don Henley are leading a group of musicians who are lobbying for new California legislation that would free artists from "servitude" to record companies.

Last week, Michael Jackson joined a coalition by radical civil rights activist Reverend Al Sharpton, and accused his label, Sony Music, of questionable accounting practices.