Analyst: Geohot suit will deter hackers, a “win” for Sony

Tuesday, 12th April 2011 08:32 GMT By Stace Harman

The legal action taken by Sony against PS3 hacker George Hotz will make others considering following in his footsteps think twice, claims Wedbush Morgan’s Michael Pachter.

As reported last night, Sony and Hotz have agreed an out of court settlement in the case of Hotz being sued for publishing PS3′s root key, ending months of high profile verbal back and forth.

Sony has also been granted “permanent injunction’ against Hotz, which, according to lawyer-turned-analyst Pachter, will deter the hacking community from further targeting PS3.

“I’m confident that most hackers will see the potential for litigation – and the costs involved – as a deterrent, at least in those countries that have laws respecting intellectual property rights,” Pachter told EG.

He went on to say that it’s a win for Sony, who has not only successfully stopped Hotz from further action but, in flexing its legal muscle, has shown it’s serious about fighting its corner against hackers.

“Sony is glad to put this litigation behind us,” commented Sony’s legal counsel, Riley Russel.

“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.”



  1. Christopher Jack

    Doubt it, while hackers maybe skilled many of them do lack common sense (Talking about unethical hackers, not programmers).
    Most of them believe that Sony will sue them for downloading the CFW, lol! Such retards. They’re likely to brick your console if you go onto PSN & that’s about it. Guys who develop legitimate programs for the CFW are probably the only guys who may suffer who don’t deserve it.

    #1 4 years ago
  2. 2plus2equals5

    Poor sony, if pachter says so, sony will be attacked by every haker in the world :(

    #2 4 years ago
  3. Dannybuoy

    If only these hackers focused their efforts on something worthwhile for the greater good of mankind and stopped thinking everyone owes them something then we’d be living in a better world. One day they’ll grow up and realise that they’re not really being very constructive. And in other news from inside my utopia…

    #3 4 years ago
  4. pukem0n

    no it wont, it will just tell them to NOT go onto tv or anything, so sony never knows who these people are ^^

    #4 4 years ago
  5. Christopher Jack

    GeoHot backed out as soon as Sony offered him the chance, this whole case was only a warning from Sony to the hackers ‘don’t mess with our investments’, he wasted those donations so he could flee from Sony with his tail tucked between his legs so in retaliation: He’s throwing a tantrum & joining a boycott, well done Hotz, you’ve accomplished nothing! All you did is make a bunch of geeks mad at a large corporation for which 95% of it’s consumers were already happy for what they were offering. If he didn’t see this happening from the start once he published that key then he has zero common sense. If you plan on doing anything that will cost a company money, make sure you’re smart enough to hide your true identity.

    #5 4 years ago
  6. YoungZer0

    @6: But, but the fame!

    #6 4 years ago
  7. Christopher Jack

    Lol true, as far as I’m concerned he did this for the egoboost.
    Anyone even remember the guy(s) who first cracked the Xbox 360?

    #7 4 years ago
  8. YoungZer0

    @8: It was cracked?


    #8 4 years ago
  9. WolfStar932

    I see this as anything BUT a “win” for Sony. They threatened to sue Geohot and ended up making a deal with him in which all he has to do is stop sharing info that’s already widespread on the internet. He’s done his part already, but didn’t bother hiding his identity. That’s the only reason he was found and “dealt” with. Someone with this knowledge could/will just as easily do the same.

    #9 4 years ago
  10. ManuOtaku

    i dont see sony the winner, for me is the looser, this wont stop other people from doing the same, if they do they only will get punish by signing a paper promising they would never do it again, oh what a strong statement sony made, and sony neither achive the main goal of this take GeoHot down and to send a clear message to all hackers that Sony is not to be messed with, another thing is that this neither wont stop him (GEO) to teach secretly other people doing in so, also sony didnt see the things going all so well for them neither, thats why they where ok with this settlement out of court, with an only, you sign you wont do it again, or at least is a very Phyrrhic victory when considering 1) the PS3 has now been permanently hacked 2) Sony has now attracted the attention of every single other hackers out there, instead of scaring them off.

    Geo on the other hand has gotten away relatively free. Now he is free to hack when we wants, only with the exception of sonys products, so thats way better than going to jail or being screwed for life.

    For me the real winners from this are the pirates and the loosers the consumers in the end.

    One last thing the language of the before mentioned documents show that Sony has indeed made concessions after all, the thing is just that they are confidential, therefore we need to wait for the next firmware in order to see if we can have any clues about it.

    This settlement did included terms that cover future DCMA exemptions, if jailbreaking consoles is given the green light on other levels (congress, supreme court, ect), any injunction on Hot effected by it would be lifted

    #10 4 years ago
  11. TheWulf

    @3 – Christ. Are people this ignorant? Millions of hackers around the world are already doing just that. Have you seen how the Kinect was hacked to be used for medical purposes? How it’s been hacked by robotics engineers to use as a particularly interesting control mechanism? You should try reading the Hack a Day site. Positive hacking goes on all the time.

    But because one hacker takes on your favourite corporation, you bleet like a bleeding sheep over how evil all hackers are, because, of course, one instance equals all, the world is black, white, and simple, and everything always makes sense. I’m sorry but this is a 2 + 2 = 5 sort of world, and you’ll find various sorts of hackers working toward a variety of ends.

    Painting all hackers in a negative light for the actions of one is ludicrous. Shall we say that all Germans are evil too for the actions of Nazi Germany in the same breath? How about all Americans for Hiroshima? And those were atrocities rather than someone with too much time hacking your favourite console toy.

    People need to get over themselves and realise that the world is bigger than that, and it has all sorts of people in it. The world goes beyond your console toy.

    #11 4 years ago
  12. TheWulf

    It’d do you all good to read that on a regular basis to see some of the good and interesting things hackers get up to. Hopefully you’ll be able to understand it, but I’m offering it in the hopes that you’re better than this. You sound like ignorant luddites. You shouldn’t.

    #12 4 years ago
  13. Christopher Jack

    @11, You clearly didn’t here him say “these hackers”.

    #13 4 years ago

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