According to legal documents, the court has appointed Kurt Cobain's mother, Wendy O'Connor, and his sister, Kimberly Dawn Cobain, as the new custodians.
Reasons for the custody battle are unknown, but it isn't the first time Love, 45, has experienced such problems.
In 2003, Frances Bean was temporarily placed under the care of O'Connor after Love was arrested and accused in an attempted break-in at an ex-boyfriend's home, overdosed on painkillers and made a suicide threat.
Love admitted a misdemeanor charge of being under the influence of a controlled substance. She regained custody in 2005.
"Life is about choices," Love said in 2005. "And I've chosen to move forward with my life in a healthy and positive way."
Frances Bean expressed that she doesn't want to live in the shadow of her famous parents forever.
"I get it, I really do," she said. "But at the same time it's creepy. These people are fascinated by me, but I haven't done anything. If you're a big Nirvana fan, a big Hole fan, then I understand why you would want to get to know me, but I'm not my parents."