If an artiste - let's say Mike Goldfield - leaves his record label - WontGoAllTheWay Records - in a huff and signs to Pony Music, WontGoAllTheWay loses the rights to his future music. They can't create it; they can't sell it. That is fine.
What it doesn't mean is that WontGoAllTheWay Records will then visit every record shop in the country, remove all unsold records, and then visit every house and remove every SOLD record too.
Yet that is exactly what is happening here.
It is theft. No ifs, no buts, no weasel words. (And don't bother pointing out the legal niceties of licensing; that's just another way of saying "extortion")