New UCL competitor decision: No Doubt v. Activision Publishing, Inc.

The rock band No Doubt entered into a licensing agreement allowing Activision to use avatars of the band members in the video game Band Hero.  When Activision used the avatars in a manner that exceeded the scope of the licensing agreement, No Doubt sued for violation of the UCL's "fraudulent" prong, arguing that Activision's conduct was likely to deceive a reasonable consumer.

The trial court denied Activision's anti-SLAPP motion, and the Court of Appeal (Second Appellate District, Division Four) affirmed, holding that No Doubt had established it was likely to prevail on the UCL claim.  No Doubt v. Activision Publishing, Inc., ___ Cal.App.4th ___ (Feb. 15, 2011).  The opinion does not address standing, but it does contain an interesting discussion of the possible interplay between the UCL and the First Amendment.  Slip op. at 22-28.