I've heard several different reasonings over the years. I don't think it actual got him out of a contract but it allowed him to screw the record company. His ne

I've heard several different reasonings over the years. I don't think it actual got him out of a contract but it allowed him to screw the record company. His new 'name' was difficult to market and they had the rights to the 'Prince' name, not his new one, so any new merchandise they created would not be matching the name he was now marketing himself under. Fans are going to listen to him and not the record company. So all in all he was just screwing them out of money and making their job difficult but it didn't actually end any contract.