It a bit of a reversal, the US District Court in the Northern District of California has granted Sony a temporary restraining order against George "Geohot" Hotz and the Failoverflow team. The case revolves around the efforts of two unrelated hacks on the Sony PS3 that allow unsigned software to be run. Sony contends that this is supporting piracy, and the DMCA expressly forbids it.
As a result of this ruling, Geohot and Failoverflow have to stop all activities related to hacking the PS3, and cannot provide so much as an encouraging word or link to other attempting to do the same. Mr. Hotz is also required to turn over all computing equipment that was used in the creation of the PS3 jailbreak. This last bit may be contested by Geohot's lawyers, says Engadget.
Of course, this isn't stopping anyone from finding the code online. We have to assume Sony knows this genie isn't going to be magically put back in the bottle. It's out there and there are more industrious young modders out there that are likely to take up the banner even more readily in the face of legal action.