A method for compensated laser cutting of a product label, the method comprising receiving (404,802), by a label printing system, an input signal that includes an image file for the product label, the method further comprising: determining raster data for the product label, wherein the raster data defines a print pattern of a label image for the product label, the raster data including amounts and types of inks to be deposited at various pixel locations on a first surface of a pressure sensitive label stock, wherein the pressure sensitive label stock includes a face stock, an adhesive, and a liner, wherein the face stock is removably bonded by the adhesive to the liner, and wherein the first surface is on the face stock; determining cut line data for the product label, wherein the cut line data defines a cut line for the product label; analyzing the raster data to determine which pixels intersect the cut line; determining characteristics of the inks for each of the pixels that intersect the cut line; calculating reflectivity of the inks and the face stock at each of the pixels that intersect the cut line; determining a variable setting for any of power or frequency of a laser of a label cutting system, based on (i) the face stock, (ii) the adhesive, and (iii) the determined characteristics of the inks for each of the pixels that intersect the cut line, the determined characteristics of the inks including the calculated reflectivity of the inks at each of the pixels that intersect the cut line; based on the image file, printing the product label, by the label printing system, on the first surface of pressure sensitive label stock; and controllably varying any of the power or the frequency of the laser for each of the pixels that intersect the cut line, by the label cutting system, based on the determined variable setting, to cut through the inks for each of the pixels that intersect the cut line, the face stock, and the adhesive, without cutting through the liner. determining raster data for the product label, wherein the raster data defines a print pattern of a label image for the product label, the raster data including amounts and types of inks to be deposited at various pixel locations on a first surface of a pressure sensitive label stock, wherein the pressure sensitive label stock includes a face stock, an adhesive, and a liner, wherein the face stock is removably bonded by the adhesive to the liner, and wherein the first surface is on the face stock; determining cut line data for the product label, wherein the cut line data defines a cut line for the product label; analyzing the raster data to determine which pixels intersect the cut line; determining characteristics of the inks for each of the pixels that intersect the cut line; calculating reflectivity of the inks and the face stock at each of the pixels that intersect the cut line; determining a variable setting for any of power or frequency of a laser of a label cutting system, based on (i) the face stock, (ii) the adhesive, and (iii) the determined characteristics of the inks for each of the pixels that intersect the cut line, the determined characteristics of the inks including the calculated reflectivity of the inks at each of the pixels that intersect the cut line; (i) the face stock, (ii) the adhesive, and (iii) the determined characteristics of the inks for each of the pixels that intersect the cut line, the determined characteristics of the inks including the calculated reflectivity of the inks at each of the pixels that intersect the cut line; based on the image file, printing the product label, by the label printing system, on the first surface of pressure sensitive label stock; and controllably varying any of the power or the frequency of the laser for each of the pixels that intersect the cut line, by the label cutting system, based on the determined variable setting, to cut through the inks for each of the pixels that intersect the cut line, the face stock, and the adhesive, without cutting through the liner.