Warhol was the band's manager and producer during the recording of their first album and designed the cover art specifically for the album. According to reports, Warhol was given a $3,00 advance for the design of the artwork.
Apparently, upon reading that The Warhol Foundation had been planning on licensing this famous image to Apple, Inc, for use on iPods and iPads, former VU members Lou Reed and John Cale filed suit, claiming that "The symbol has become so identified with The Velvet Underground ... that members of the public, particularly those who listen to rock music, immediately recognize the banana design as the symbol of The Velvet Underground."
The banana image is now entrenched as one of the most famous examples of cover art and of the 1960's album design ethos. And, the band's debut album is the piece of work for which they are most recognized and of which Brian Eno allegedly quipped, "Everyone who bought that album started a band."
The suit also stipulates that the band has requested that the Warhol Foundation cease with further licensing agreements on the grounds that such action is "likely to cause confusion or mistake as to the association of Velvet Underground with the goods sold in commerce by such third parties."
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