The LA Times reports that Los Angeles County Superior Court Judge Kenji Machida ruled in favor of the band and denied Activision's claim that it could use First Amendment freedom-of-speech rights to cover the use of the band's images for general use.
The case will continue forward. No Doubt's case revolves around the "right-of-publicity" and the band claims it only agreed to have its avatars be seen during No Doubt songs.
Courtney Love has threatened to sue Activision over Kurt Cobain's likeness being used in a similar way in Guitar Hero 5.
I have No Doubt this case will be a success.
aaaaaaaaahhhhhhhh i see what you did there