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Originally Posted by Undertoad
They will find their contract allows Sony to do whatever they want.
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Maybe. In California contract law, there is a "good faith" implication, which states that both parties are acting in good faith, in accordance with the stipulations stated. It's the clause that allows you to sue your medical insurance company when they refuse to cover standard procedures based on their own non-standard classifications system (Chemotherapy as an experimental, non-covered procedure?).
I can see an artist bringing a case that holds the label liable for acting in bad faith. The intent of the recording contract is to secure distribution for the recorded content. The obligation of the artist is to provide and promote that content. The obligation of the label is to fund and distribute that content.
This kind of crippling DRM might be a "bad faith" act on the part of the labels - an act that essentially voids their obligation to distribute the content.
I dunno. Might be a shot in the wind, but if I were an artist whose fan base suddenly threw a riot and left because of the actions of my label, i might sue.