A council is bringing Anti Social Behaviour Orders (ASBO) against top music bosses after it received over 1,000 complaints about fly posting.
If the illegal posters appear in the north London borough of Camden again the executives of Sony and BMG could be jailed for up to five years.
Fly posting has been defined as causing "harassment, alarm or distress" - the criteria required to gain an order.
Camden's move has been backed by the Keep Britain Tidy Campaign.
Its chief executive Alan Woods said: "BMG and Sony save themselves over £8m a year on advertising by fly posting illegally in Camden alone.
"While that boosts their already fat profits, it does however leave council taxpayers throughout the country with the bill to clean it up.
"That's something that record company chiefs cared little about before today but with the threat of a jail term hanging over their heads - maybe they'll think twice now."
The council estimates that dealing with illegal fly posting costs the Borough's taxpayers around £250,000 a year."
Dame Jane Roberts, leader of Camden Council, said: "Fly posting is a similar sort of behaviour to graffiti, in that it involves the illegal and non-approved use of property, degrading that property and making an area seem uncared for and an unpleasant place to be.
"Fly posting has a detrimental impact on the value of property and contributes to people's fear of crime and, as a result, to actual criminal behaviour, which is why we are seeking to outlaw it."
A spokesman for BMG said they would be contesting the ASBO and a spokesman for Sony Music UK said they had no comment to make.
The companies will attend a court hearing at Highbury Corner Magistrates' Court on 14 June to determine if the order is served on them.