The subject invention pertains to a novel purified polypeptide having laccase activity and the nucleic acid sequences encoding the polypeptide. The disclosed polypeptide works at moderately high temperatures from below 20° C. to about 70° C., both acidic and alkaline pH conditions, high salt concentrations and in the presence of organo solvents. The high stability of the enzyme enables its wide applications under even extreme conditions. The invention also provides methods of producing the laccase enzyme.