The previous year 1980 saw the U.S. punk rock movement hitting a peak in popularity. With "Damaged" and their growing reputation as an impressive live band, Black Flag seemed poised on the cusp of a commercial breakthrough. The record was to be distributed by now-defunct Unicorn Records, a subsidiary of MCA. Trouble began when MCA refused to handle "Damaged" after MCA executive Al Bergamo determined the album was an "Anti-Parent" record. However, according to longtime SST employee Joe Carducci the "Anti-Parent" statement was not the real reason for MCA's refusing to distribute "Damaged"; Carducci reported that Unicorn Records was so poorly managed and so deeply in debt that MCA stood to lose money by distributing the album, regardless of its content. This was the beginning of a legal dispute that would, for several years, disallow Black Flag from using their own name on any record after "Damaged" was released on SST Records and a copy of the "Anti-Parent" statement was placed on the album's cover.