The legal case was brought against a record shop in Manchester that displayed a poster of the album cover in its window, not against the band itself.
From Wikipedia:
I still seem to recall that the name of the album came from a “Bollocks” uttered by Sid Vicious - don’t forget he was a close friend of Johnny - in court, before he replaced Glen Matlock.
Ah, they’re 1920’s style “Death balls”.
The term bollocks refer to smaller than normal leadball ammunition the use of which gives much less weapon recoil but with no, or very little, effect on the target.
It was originally used by clergymen who went shooting with the lord of the manor and other local worthies after church service. Presumably they wished to avoid any possibility of bruising of the shoulder or endangering God’s creatures.
The meaning of the word can summed up as ‘loud bang, lot of smoke, no result.’
Cite?
I have always understood the literal meaning to be “testicles,” as the others in this thread have asserted.
Americans don’t use the term “bollocks”, but I certainly know it from reading. I’m surprised people are unfamiliar with the term.
I certainly have heard the common phrase “bollixed up”, which I did not realize is a possibly euphemistic respelling of “bollocksed up”. People who used the phrase, I’m convinced, didn’t know its origin. If they did, they wouldn’t have used it.
Seven years ago I provided an etymology. I have never heard yours. Where did you get it? Plus, its primary meaning is clearly “testicles” in daily usage in the UK, despite its versatility.
As mentioned, it’s fairly contextual.
“I got kicked in the bollocks” = I got kicked in the balls
“That movie was bollocks” = that movie was crap
“I just ran a hundred yards in 5 seconds”… “Bollocks!” = nonsense/liar
“I bollocks it up” = I made a mess of it / I screwed it up
“He’s talking bollocks” = he’s lying / he’s wrong
“Bollocks!” = Crap!/Shit!/Fuck! (exclamation)
“The dog’s bollocks” = excellent/the best
Bollox/bolloxed/etc. = variant accepted spellings of all the above.
Johnny Rotten’s zombie corpse lives!
“Bollocks!” said the Queen. “If I had them I’d be King!”
Bollocks.
(That is: one variant of the meaning is “I don’t think that’s true’”)
Also in Ireland to be bollocksed is be very very drunk.
Talking bollocks generally means more like talking nonsense, at least in Ireland anyway.
Perhaps they’re using it precisely because they know the origin.
There’s also a similar phrase, “X has gone balls up,” meaning it has been bollixed up.
Quoth trabi (who probably isn’t still around):
But of course, that just means that the word “crap” is very versatile, too.
Wow - zombie thread-tastic!
This is also sometimes simplified to just “the bollocks”, as in “Ah schweeet, that movie was the bollocks”. Meaning it was great.
Not to be confused with the similar “That movie was bollocks”, as that still means it totally sucked. 
Another angle, from agriculture…
Though steers are male cattle who lost their testicles very young, bullocks are male cattle who reached sexual maturity before being relieved of their testicles. The bulls still have 'em.
In the U.K. the verb Bollocking, specificly means a telling off.
I’ve just had a bollocking from the boss,or, I’ve just given so and so a good bollocking for being late every day.
But otherwise the noun is as up thread, testicles or talking crap.
We’ve had a fake Brit posting on these boards recently, I’m sure that they’re taking a close interest in this thread.
Cor blimey, guv’nor, I’m a pukka Britisher! Honest, like! 
Why on earth would someone pretend they’re British? Or American or French, or Indonesian, anything else for that matter?
How weird.
Anyway, additional contexts of drunk and telling-off - concur. I’d never really thought about how versatile that word is!