Former American Idol Winners and Contestants Sue Sony Over 'Royalty' Claims

Former "American Idol" winners and contestants Kelly Clarkson, Carrie Underwood, Clay Aiken and Chris Daughtry are suing Sony Music Entertainment, claiming that the production house is withholding royalties due to them.

19 Recordings, which represents a range of "American Idol" stars including Kelly Clarkson, Carrie Underwood, Clay Aiken and Chris Daughtry, is suing Sony Music in New York federal court. The lawsuit claims that Sony Music has unlawfully withheld millions of dollars' worth of royalties. 19 Recordings filed the $10 million lawsuit after auditing Sony Music's books pursuant to record agreements and failing to reach a settlement with the company, according to The Hollywood Reporter.

"Such exploitation can only be fairly described as 'transmissions' or 'broadcasts,' and, upon information and belief, are so described in the licenses or other agreements between Sony and the streaming services," reads the lawsuit. "However, Sony has nevertheless accounted to 19 for all streaming income received at the lower Album rate as if the exploitation between the streaming service and the end user was described as a 'distribution' or 'sale' and, by so doing, Sony has breached the Recording Agreements."

Jason Morey, head of 19 Entertainment worldwide told the gossip website that they didn't plan on suing Sony Music but the production house has left them with no choice and it was essential to protect their artists.

Other artists who are also part of the complaint include Kellie Pickler, Jordin Sparks, David Archuleta and David Cook. 19 Recordings also accuses Sony Music of stiffing artists on royalties for advertisements and compilation albums. According to Sony, however, it has overpaid 19 Recordings in the past.

"Sony's interpretation would lead to the absurd result of potentially allowing it the ability to conduct an unlimited number of TV and/or radio advertising campaigns in a given country for a particular Album without ever seeking 19's prior approval so long as each individual campaign, however limited, was within the specified required range," the lawsuit mentioned. "...Sony attempts to state compilation albums are not albums."

The lawsuit seeks $7 million in compensatory damages, $3 million in interests and audits and attorney fees, The Tennessean reports.