Kenny Rogers Sues Record Label Over Royalties

Kenny Rogers is suing Capital Records in federal court, alleging breach of contract for underpayments on royalties.

The legendary singer of such hits as “The Gambler” and “Coward of the County,” claims the record label underpaid royalties from online sales.  That includes everything from albums to single songs to ringtones.

The Tennesseean reports that Rogers and other artists to file similar suits, claim the record companies deliberately underpay the royalties for online sales by defining them as “sales” instead of “licenses.”  That distinction is huge because, according to the report, profits from licensed music usually gets the artist about half of the profits.  They get much less for transactions classified as “sales.”

Rogers also alleges that he is still owed money from awards the label won in lawsuits against companies like Napster.