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Unexpected Settlement of Sony and GeoHot over PS3 Hacking Lawsuit

Finally, the legal battle between Sony and George ‘GeoHot’ Hotz has come to an end as both the parties have come to an agreement outside the courtroom.

This all began when Sony chased after GeoHot subsequent to the hacker released information that persuaded the people to hack the company’s PS3 or PlayStation 3.

PS3

Both the parties expressed their happiness over the conclusion of sordid affair in a joint statement on the Sony blog:

Sony Computer Entertainment America (“SCEA”) and George Hotz (“Hotz”) today announced the settlement of the lawsuit filed by SCEA against Hotz in federal court in San Francisco, California. The parties reached an agreement in principle on March 31, 2011. As part of the settlement, Hotz consented to a permanent injunction.

Both parties expressed satisfaction that litigation had been quickly resolved. “Sony is glad to put this litigation behind us,” said Riley Russell, General Counsel for SCEA. “Our motivation for bringing this litigation was to protect our intellectual property and our consumers. We believe this settlement and the permanent injunction achieve this goal.”

“It was never my intention to cause any users trouble or to make piracy easier,” said Hotz, “I’m happy to have the litigation behind me.” Hotz was not involved in the recent attacks on Sony’s internet services and websites.


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In the action, SCEA accused Hotz of violating federal law by posting online information about the security system in the PlayStation 3 videogame console and software that SCEA claimed could be used to circumvent the security system in the console and allow the playing of pirated videogames. Hotz denies any wrongdoing on his part. Hotz’s motion to dismiss for lack of personal jurisdiction was still pending before the federal court in San Francisco but a preliminary injunction was issued requiring Hotz to take down the postings challenged by SCEA.

“We want our consumers to be able to enjoy our devices and products in a safe and fun environment and we want to protect the hard work of the talented engineers, artists, musicians and game designers who make PlayStation games and support the PlayStation Network,” added Russell. “We appreciate Mr. Hotz’s willingness to address the legal issues involved in this case and work with us to quickly bring this matter to an early resolution.”

The settlement of the entire matter is quite unexpected as both the parties apparently were predetermined on taking the issue to court over the past few months. Sony is quite happy over the settlement of entire issue and expresses it as their victory. This settlement may not be a good sign for the PS3 hacking community as they have to find a new backing source for them.

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