James Taylor says he is owed millions in royalties from digital downloads! This case could have a far reaching impact on the digital download business!

James Taylor has filed a lawsuit against Warner Bros. Records seeking $2 million in damages for royalties from digital downloads.

After an audit of Warner Bros. Records, Taylor said he discovered he’s not receiving as much money from digital downloads of his songs as he thinks he should. Taylor said a contract with Warner Bros. Records, his former record company, states he should receive 50% of royalties from licenses, though according to the lawsuit, the company denies a digital download is considered a license. Taylor’s lawsuit seeks damages of about $2 million for royalties for digital downloads, as well as underpayment for foreign receipts, budget sales and the unauthorized use of the musician’s songs on compilation albums. He is also seeking damages for allegedly receiving a smaller-than-expected share of the record company’s $110 million settlement with Napster.