It was bound to happen eventually, as Sony's teams of lawyers finally decided to do something about the much publicized PS3 hack - by suing, of course.
Sony has launched a massive lawsuit against geohot and members of the hacking group fail0verflow, for breaking the PS3's security system and releasing a hacked firmware that allows homebrew to run on the PS3. While geohot specifically stated that the hacked firmware was not for piracy, and could not be used for piracy, further modifications based on hacking group fail0verflow's and geohot's techniques could easily open up the PS3 to mass piracy. Pirated games are already starting to appear on the Internet.
Sony isn't waiting for things to get worse before they act, and has sued geohot and the fail0verflow team members for breach of the DMCA, the violations of the computer fraud and abuse act, for contributory copyright infringement, violation of the California comprehensive computer data access and fraud act, breach of contract, tortious interference with contractual relations, common law misappropriation.
And so to the courts we go, to determine if geohot's actions are legal or illegal. To be fair, the PS3's security system was only broken due to flaws in Sony's design. Still, it's very likely the courts will side with a mega-corporation like Sony over a group of hackers.
Discuss the latest developments in the PS3 Hack-gate, and see the filed complaint papers, here: