According to the official PlayStation blog, Sony Computer Entertainment America (SCEA) and George Hotz reached a settlement wherein Hotz consented to a permanent injunction, meaning he is not allowed to distribute the PS3 jailbreak code ever again.

“Sony is glad to put this litigation behind us. 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,” said Riley Russel, general counsel for SCEA.

In the lawsuit, Sony accused Hotz of violating federal laws by posting information on the PS3 console's security software online. This software, better known as a 'rootkey' enables hackers to trick the PS3 into playing pirated software while thinking it's legitimate.

Hotz denies any wrongdoing on his part saying, “It was never my intention to cause any users trouble or to make piracy easier.”

Hotz was not involved in recent attacks on the PlayStation Network and other Sony websites, although his impassioned pleas for assistance from the online community definitely helped influence certain members of hacker group Anonymous to vent their anger on Sony.

Once again Sony has proven the legal might of massive corporations, settling the case quickly and painlessly in the courtroom. Outside its confines though the ruling will have little effect on people actually using, or searching for, the PS3 rootkey, which has already made its way into every nook and cranny of the internet.