Yeah, it is, when it's legally enforceable. But what was happening with SG was they were asserting that Apnea was under a non-compete contract though she wasn't, and anything Lithium Picnic shot of Apnea was in violation of that contract (even if it predated the contract), and I think they were further trying to keep LP from working in the genre.
It's been a couple years, but it was pretty big drama at the time.