The entire album echoes many of guitarist Lewie's favorite artists, including The Velvet Underground, The Byrds, and The Doors.
Clifford James, a lawyer for The Velvet Underground, said the band disagreed with the ruling and believes it will win its trademark claim.
Although they sold poorly at the time, The Velvet Underground have come to be considered one of the most influential groups of the 1960s.
Manhattan district judge Alison Nathan rejected The Velvet Underground's copyright claim.
They found inspiration in the Velvet Underground and psychedelic sixties music.
"The symbol has become so identified with The Velvet Underground that members of the public... immediately recognise the banana design as the symbol of The Velvet Underground, " court papers said.
Legal papers filed in Manhattan in January stated that the artwork, which was never officially copyrighted, "became a symbol, truly an icon, of The Velvet Underground" for some 25 years.
The judge said on Friday said The Warhol Foundation's agreement not to sue for copyright infringement over The Velvet Underground's use of the image meant there was no copyright dispute for her to resolve.
In a recent conversation at BAM, Mr. Cale, 70, spoke with compassion and affection for Nico, a vocalist with the Velvet Underground, the band Mr. Cale founded with Lou Reed some four decades ago.
Closer to Orchard Road, the giant Zouk and Velvet Underground are popular with Singaporean college students.
As well as the Buena Vista veterans headlining the One World (formerly Jazz) stage, gems from the outer fields include Cerys Matthews and Beth Gibbons on the acoustic stage, Fatboy Slim and The Streets in the dance tent and, for some reason, former Velvet Underground bassist John Cale, 61, headlining the new bands tent.
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