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Wu-Tang members could sign anywhere
Record deals of the time worked the other way. If a label signed a group and any member later went solo, that member also had to sign with the label. RZA had a record deal as a solo artist that didn't work, and he made sure not to sign anything like it again.
With Wu-Tang, none of the members had to sign with the label that gave the group its original deal, BMG's RCA. The group was signed in one place, and the artists kept the right to sign in different places. They weren't stuck under one agreement.
Once the group's album got hot, members were signing deals in other places. People in the business had never seen that before.
Why do labels claim members' solo careers?
Group contracts often include a leaving member clause, which gives the label the right to sign a member who departs for a solo career. The clause protects the label's investment in building the group. Wu-Tang's structure left its members free of that obligation.
How did Wu-Tang members sign elsewhere?
Enter the Wu-Tang (36 Chambers) came out in November 1993 on Loud Records, distributed by RCA. Method Man then signed a solo deal with Def Jam, Ol' Dirty Bastard with Elektra, and GZA with Geffen. GZA's Liquid Swords, released on Geffen in 1995, was one of the results.
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