Sony v Hotz is, in a way, the same kind of case that the Nintendo v Songboy/Songpro case was about ten years ago: someone using code used in a machine to do features that isn’t currently within the system. Sony doesn’t like their code being used for anything other than what they want it to be used for, and they sue on the basis of enabling piracy and cheating, as well as copyright infringement. However, with how poor system sales of the PS3 in January has also hit front pages (which has baffled everyone as to what the cause is since the games DID sell well), the more this case drags out, the more people will sour on Sony’s side of the story. So the solution might be what Nintendo and Songboy/Songpro did ten years ago with Jessie Jackson's aid: work out a compromise.
I’m sure every Sony fanboy in the world is nerd raging at that proposition right now. But calm yourself for just a moment so I can explain why this might be within both parties’ interests.