Judge Susan Ilston (U.S. District Court for the Northern District of California) the judge presiding over Sony’s lawsuit against Geohot (aka. George Hotz), the fail0verflow team (Hector Cantero, Sven Peter, “Bushing,” and “Segher”), and 100 “does” over PS3 Master Key Reveal has postponed the trial until Sony can justify filing in California.

Hotz’s lawyer, Stewart Kellar, argues that California has no jurisdiction in the case. His reasoning is that Hotz lives in New Jersey and distributed his program from New Jersey therefore if there were any merit to the lawsuit(which they don’t think there is) then the district court of New Jersy would be the proper venue. Sony is counter arguing that links to the hack were posted to Youtube and Twitter whose parent companies are located in California, there fore California is the proper venue. Sony also claims that Hotz recieved donations for the hack through PayPal which is also located in California and according to PlayStation’s terms-of-service agreement, legal disputes are to be settled in federal court in California where SCEA headquarters are.

Judge Illston then remarked that if using Twitter or Facebook is enough to bring a case to San Francisco, “the entire universe would be subject to my jurisdiction,”.

I have to agree with the judge here. If the location of the servers is all that matters then all companies will relocate to the city that has the most favorable laws for corporations. That is the reason all credit card companies are officially located in Delaware.

What do you think? Should case be moved to Jersey?

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