Magic Circle Music was founded by Manowar bassist Joey DeMaio in 2005 named after Richard Wagner's Der Ring des Nibelungen by which DeMaio is highly inspired. The purpose of the label is to give the band (Manowar) complete creative control of their operation. Furthermore it is stated on their website that they (Manowar) saw many other bands "fall to the perils of greed and commercialization in the music industry". To that end DeMaio founded Magic Circle Music through which he felt he could help other developing artists avoid these traps.
It is known[by whom?] that at some point in late 2007, DeMaio became involved in a legal battle with Rhapsody of Fire. Due to this, the release of any of the band's new material was suspended until November 18, 2009 when they signed with Nuclear Blast and announced they would have released a new album in April 2010.