In 2009, the group accused Activision Publishing of misleading them during negotations. They claim that they were never told that their likenesses would be able to be "unlocked" in the game, allowing players to use their figures to play music from other acts.
No Doubt is claiming that the feature makes them appear like a "virtual karaoke circus act".
They have cited instances in which players can use Stefani's avatar to perform suggestive songs such as the Rolling Stones' "Honky Tonk Women", or use a virtual version of bassist Tony Kanal to sing "Just A Girl" in Stefani's voice.
Superior Court Judge Ramona See rejected Activision's motion to dismiss claims from the case, including fraud, violation of publicity rights and breach of contract. See ruled that there are genuine disputes about evidence that a jury should consider.
The case is expected to go to trial later this year. Activision's representative claims that the company has a strong defence.
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