Sony gives up on PS3 hacking lawsuit

Sony said it reached a settlement with PS3 hacker George Hotz over his posting of the console's private key.

In a post on the PlayStation blog, Sony Computer Entertainment America said: "The parties reached an agreement in principle on March 31, 2011."

In a statement, Riley Russell, General Counsel for SCEA said: “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.”

SCEA said it accused Hotz of violating federal law by posting online information about the security system in the PlayStation 3 console and software that SCEA claimed could be used to circumvent the security system in the console and allow the playing of pirated videogames, a claim it failed to prove. 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.”

For his part Hotz posted on his blog:

"As of 4/11/11, I am joining the SONY boycott. I will never purchase another SONY product.

I encourage you to do the same. And if you bought something SONY recently, return it.

Why would you not boycott a company who feels this way about you?"

He added: "There is much more to come on this blog."