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The company has been facing backlash during the duration of the legal battle between Dr. Luke and Kesha, who is signed to his record label under Sony and is seeking to leave after accusing him of sexual assault.
In February, a New York judge denied Kesha's injunction request that would have allowed her to continue making music under another label while the case is ongoing.
The singer hasn't released music since 2013 and is currently required to release six more albums under Dr. Luke's Kemosabe Records.
Celebrities such as Adele, Lady Gaga, and Demi Lovato have voiced their support for the artist, and Taylor Swift donated $250,000 to help with the legal battle.
A small group of fans gathered outside of Sony's New York City headquarters to protest in support of Kesha February 26 .
Neither Sony nor representatives for Dr. Luke confirmed the news to TheWrap.
Sources told the site that a mutual negotiation will most likely be required to break the contract and said, "No court has convicted this person [Dr. Luke], so there may not be any legal basis to terminate an agreement. It would have to be mutual."