Eriq Gardner, writing for The Hollywood Reporter:
What’s a record label actually good for? That is a question implied in a lawsuit between Warner Bros. Records and Avenged Sevenfold, a heavy metal band from Huntington Beach, California, that is scheduled to go to trial this year and has the potential to upend the music industry.
The dispute dates back to 2015, when the act notified its label that it was terminating the contract it signed in 2004, citing the “seven-year rule,” which bars personal service contracts lasting longer than seven years. The law has its roots in a pro-labor statute put on the books after the Civil War to prevent long-term contracts from becoming the means for involuntary servitude. The modern version of the rule was famously tested in entertainment in 1944, when Olivia de Havilland used the law to break her contract with Warner Bros after the studio repeatedly suspended her for turning down roles. An appeals court decision helped bring an end to Hollywood’s old studio system.