LA Times (thanks Eurogamer) reports that Activision have lost a round in the ongoing lawsuit they face from pop band No Doubt. No Doubt claim that Activision were allowed to use their likeness in Band Hero for three of their songs - not as unlockable characters that can be used for other songs. Activision tried to argue that the whole thing falls under freedom of speech, protected by the 1st Amendment, but a judge has now thrown that defense out.
Activision have also tried to change the lawsuit to be a copyright-issue, instead of dealing with the right-of-publicity issue that they currently face, but that was also denied by the court. They will probably appeal the ruling, made by Los Angeles County Superior Court Judge Kenji Machida.