The inducible and constitutive forms of laccase from the fungus Pholiota mutabilis show both the oxidative and demethylating activity, which proves the bifunctional character of the enzyme. 2. The oxidative/demethylating activity ratio of the forms induced either with ferulic or syringic acid is different from that shown by the constitutive form. 3. Splitting of one methoxyl group from the methoxyphenol substrate is associated with the release of one molecule of methanol.