Rogers Sues Capitol

Kenny Rogers has joined a growing number of artists to sue their record labels over digital sales.

Rogers’ suit against Capitol Records claims his former label breached their contract and underpaid him for digital song royalties “in excess of $400,000.” The filing raises a number of complaints including breach of the duty of good faith and fair dealing and unfair competition.

“Despite its obligations under the recording agreements, Capitol Records has consistently failed to properly and accurately account to and pay Kenny Rogers under the royalty structures set forth,” the suit says, noting the label has made a conscious decision “to deprive artists of their proper royalties for the licensing of master recordings for sale by third party download and mastertone companies.”

Rogers’ complaint shares some similarities with a suit filed by Peter Frampton in December that sought $500,000 from Universal Music Group in withheld music royalties. Eminem also sued, and won, a case last year arguing for an increase in royalties for digital sales.

All three artists are represented by Nashville attorney Richard Busch, a partner with King & Ballow. Busch is also representing Felice Catena, the sister and heir to the late Knack drummer Bruce Gary, in a similar lawsuit.

The cases have raised the question of whether online sales should be treated the same as physical sales. Record labels traditionally withheld a large portion of royalties to offset the expenses of producing and shipping physical albums. Many companies claim the same split for digital album sales, and artists have begun to cry foul.

Rogers’ suit seeks compensatory damages, a full accounting and a declaratory judgment against Capitol Records that would require the label to pay the singer half of net royalties for the sale and distribution of “non-disc” records.