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

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."