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Obviously this is bad news for geohot, but this aside, a part of me wants to see where this actually goes.
From what I understand, he's not actually done anything wrong apart from blowing his own trumpet a bit too much.
However Sony are arguing two key things
1) That he has no right to do what he wants with the PS3
2) That this directly causes losses to Sony and partners (EA specifically quoted)
For part 1, if this gets overturned this could be a landmark ruling for jailbreaking.
For part 2, is this gets thrown out then Sony will have basically admitted that their negligence alone has caused losses for their partners (Whether this is true remains to be proved, but if they argue this, they must believe it).
End result is that 3rd parties may be able to sue Sony for their negligence.
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