Veteran rapper C.L. Smooth takes action against former colleague over unpaid royalties
Veteran rapper C.L. Smooth, known for his partnership with producer Pete Rock, says someone has been secretly collecting royalties in his name. On September 13, the artist, real name Corey Penn, filed a civil lawsuit before a federal court alleging $132,000 in unpaid royalties. Evidence supplied includes records of payments and a 1099 tax document.
According to court dockets, C.L. Smooth submitted actions to carry forward a case titled Penn v. Taylor et al. in the Southern District of New York. The defendants, Nickolas Taylor, Nichelle Taylor, St. Nick Entertainment Inc. and Prosper Software Solutions Inc., doing business as Taylor Your Care, are alleged to have started a SoundExchange account in his name without his knowledge, with royalty cheques forwarded to Taylor instead of Penn.
Need to Knows
- SoundExchange collects and distributes performance royalties from digital platforms and radio such as SiriusXM.
- C.L. Smooth is accusing a former business partner of fraud, breach of fiduciary duty, and unjust enrichment.
Smooth discovered the account after he tried to set up his own SoundExchange account in March of this year, discovering an existing account was established in his name. SoundExchange began an investigation into the allegations, finding that approximately $132,000 in royalty payments were allegedly taken since 2006. After Penn regained control of his account, he accumulated $30,000 in royalties for periods between 2023 and 2026.
The two have known each other since 1989, with Taylor assisting Penn in booking performances from around 2001 despite no written management contract in place. They finally parted ways after several disputes, including both business and financial disagreements.
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