In 1995 the band signed a deal with Emanzipation Productions and entered the well known Borsing Studio together with Jan Borsing to record their first full length album Serenadium. Due to several reasons the recording got quite delayed but during this time the band got itself a larger record company in the form of Emanzipation Productions becoming a sub-division of Diehard Music Worldwide. Serenadium finally saw the light of day in the summer of 1996.
A complete line-up change occurred in 1997 but the new members didn't waste time and wrote 4 new songs which were recorded in November '97 by Lars Schmidt (Furious Trauma & Konkhra) at the Soundzone Studio and mixed by Jacob Hansen. At this time EMZ had decided to start up its own independent record company, which turned out to be Mighty Music. The first release was the The Hidden Lore EP by Iniquity in May 1998. It resulted in many positive reviews, e.g. 7/7 in Hammer (Germany) and 8,5/10 in Rock Hard (Germany).
After even more line-up changes (new vocalist, new bass player and new guitarist), the band entered the Aabenraa Studio in May 1999 to record their second full length album Five Across The Eyes with Jacob Hansen. It was released world wide through Mighty Music on November 8, 1999. Iniquity again faced a line-up change when guitarist Brian Eriksen left the band and was replaced by Kræn Meier (also member of Sacrificial). Their last album entitled Grime (once again produced by Jacob Hansen) was released in 2001 and after that only a best-of compilation album was released in 2003 before they disbanded.
After the band broke up in 2004, Mads Haarløv, Kræn Meier and Martin Rosendahl formed a death metal band called Strangler which has released one demo "Infinite Blood Abundance" but its status is currently unknown. Jesper Jensen, Rene Falther and Thomas Fagerlind have formed the band Downlord, but Jensen has since left. Brian Eriksen, Jens Lee and Martin Rosendahl are in the band Corpus Mortale.