Michael Jackson , Label dispute, Invincible, and third child (2000–03)

In 2000, Jackson was listed in the book of Guinness World Records for his support of 39 charities, more than any other entertainer or personality. At the time, Jackson was waiting for the licenses to the masters of his albums to revert to him; this allowed him to promote his old material how he liked and prevented Sony from getting a cut of the profit. Jackson expected this to occur early in the new millennium; however, due to various clauses in the contract, this revert date is still many years away. Jackson began an investigation, and it emerged that the attorney who represented the singer in the deal was also representing Sony, creating a conflict of interest.

Jackson was also concerned about another conflict of interest. For a number of years, Sony had been pushing to buy all of Jackson's share in their music catalog venture. If Jackson's career or financial situation were to deteriorate, he would have to sell his catalog. Thus, Sony had something to gain from Jackson's career failing.Jackson was able to use these conflicts as leverage to exit his contract early. Just before the release of Invincible, Jackson informed the head of Sony Music Entertainment, Tommy Mottola, that he was leaving Sony. As a result, all singles releases, video shootings and promotions concerning the Invincible album were canceled. Jackson made allegations in July 2002 that Mottola was a "devil" and a "racist" who did not support his African-American artists, using them merely for his own personal gain. He charged that Mottola had called his colleague Irv Gotti a "fat nigger". Sony disputed claims that they had failed to promote Invincible with sufficient energy, maintaining that Jackson refused to tour in the US.

Six years after his last studio album and after spending much of the late 1990s out of the public eye, Jackson released Invincible in October 2001 to much anticipation. To help promote the album, a special 30th Anniversary celebration at Madison Square Garden occurred in September 2001 to mark the singer's 30th year as a solo artist. Jackson appeared onstage alongside his brothers for the first time since 1984. The show also featured performances by Mýa, Usher, Whitney Houston, 'N Sync, and Slash, among other artists. In the wake of the September 11, 2001 attacks, Jackson helped organize the United We Stand: What More Can I Give benefit concert at RFK Stadium in Washington, D.C. The concert was aired on October 21, 2001, and included performances from dozens of major artists, including Jackson, who performed his song "What More Can I Give" as the finale.Invincible was a commercial success, debuting atop the charts in 13 countries and going on to sell approximately 10 million copies worldwide. It received double-platinum certification in the US.However, the sales for Invincible were notably low compared to his previous releases, due in part to a diminishing pop music industry, the lack of promotion, no supporting world tour and the label dispute. The album spawned three singles, "You Rock My World", "Cry" and "Butterflies", the latter without a music video.

Jackson's third child, Prince Michael Jackson II (nicknamed "Blanket") was born in 2002. The mother's identity was never released by Jackson, but he has said the child was the result of artificial insemination from a surrogate mother and his own sperm cells.In November of that year, Jackson brought his newborn son onto the balcony of his room at the Hotel Adlon in Berlin, as fans stood below. Holding him in his right arm, with a cloth loosely draped over the baby's face, Jackson briefly extended the baby over the railing of the balcony, four stories above ground level, causing widespread criticism in the media. Jackson later apologized for the incident, calling it "a terrible mistake". Sony released a compilation of Jackson's hits on CD and DVD. In the US, the album was certified platinum by the RIAA; in the UK it was certified for shipments of at least 1.2 million units.