It's already been settled out of court.CaptainTripps wrote:And he hasn't been found in violation of anything, merely accused. The issue hasn't been adjudicated at all.
He received a court ordered restraining order and a cease and desist and required to hand over all his computers and storage media that he had used. Also were granted subpoenas against Youtube to get the IPs of people who viewed it and subpoenas for the server logs for Hotz's website. Before the settlement, Hotz had said "Let's just say, I want the settlement terms to include OtherOS on all PS3s and an apology on the PlayStation blog for ever removing it". But he never got those terms. Instead he agreed to a permanent injunction to never hack another Sony product and he has even said publicly "It was never my intention to cause any users trouble or to make piracy easier." and he "will never purchase another Sony product".
From all that it sounds like he was going to be on the losing end of things and took what they were offering rather than lose in court.