Rose alleges in his 20-million-dollar claim that Activision broke an agreement not to feature imagery of the guitarist.
The singer claims they also agreed not to show any reference to Slash’s recent project Velvet Revolver.
Rose’s complaint was filed in Los Angeles Superior Court. He claims the game’s bosses “began spinning a web of lies and deception to conceal its true intentions to feature Slash and VR prominently in ‘GH III.’
The complaint also refers to moves to “promote the game by emphasizing and reinforcing an association between Slash and Guns N’ Roses and the band’s song Welcome to the Jungle.”
“This lawsuit is about protecting Guns N’ Roses and Welcome To The Jungle, and is about holding Activision accountable for its misuse of these incredibly valuable assets,” the BBC quoted Rose’s lawyer Skip Miller as saying.
However, Activision said they had “no comment”.
Guitar Hero III was released in 2007 and features a cartoon depiction of Slash on the front cover. The guitarist left the band in 1996.
The popular franchise, available on a number of formats, released the latest version of the game in September.