I'm pretty sure this is a step closer to freeing Kesha. Sony still has rights to contracts that are currently active. They could just buy out Luke on Kesha's contract.
Update: Wednesday, 1:45 p.m: A representative for Dr. Luke issued a statement denying TheWrap’s report that Sony Music is expected to end its working relationship with the music producer ahead of his contract expiration in 2017. “This is not true. Luke has an excellent relationship with Sony. His representatives are in regular contact with executives at the highest levels at Sony and this has never come up,” a legal rep for the producer said.
Out of work, no label support, the whole industry and public turning their back against him, including frequent collaborators. This is just the Cherry on top.