More bad news for Pia Toscano -- her record deal and hopes of a 2011 debut album will likely come to a screeching halt, should 'American Idol' producers prevent the aspiring singer from releasing anything based on her contract with the show.

According to a former 'Idol' contestant, 19 Entertainment -- a company which holds the rights to the music and artists that come off of the show -- gets a first grab at Toscano, and legally, she may not be able to sign elsewhere. "When you compete on 'Idol,' you must sign one of the strictest contracts in the business," the unnamed former competitor tells PopEater. "Not only does 'Idol' own you for the entire show and live tour that follows, it also controls everything you can do professionally for a long period after that."

Pia was knocked off of the 'American Idol' ladder on Thursday night, which shocked the judges and almost all of America. But by Friday morning, the fan favorite had allegedly been offered a record deal with Interscope Records, which would mean a rush debut album in the works for later this year. According to a rep for the 22-year-old New Yorker, most of that is true, except that Pia has not put ink on a deal -- because she can't.

"No way do the producers want a contestant who was kicked off having a hit record when the winner hasn't even been announced yet," another show insider says. "The first hit song has always been from the winner and this year will be no different."

The source adds, "This is about protecting the brand, not about protecting Pia. She can record as many songs as she wants, but 'Idol' will refuse to allow them to be released for now until the show is over."

Rihanna, Kelly Clarkson, and Jason Aldean will perform on Thursday, April 13, alongside the remaining Top 8 contestants.

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