It has been a while since the court battle between Sony and George Hotz began, and both sides are still arguing about what state has jurisdiction in the case. Sony argued that Hotz's use of the PlayStation 3 SDK created a relationship between Sony and Hotz, and that since Sony Computer Entertainment of America is located in California, that's where the case should be heard. Now Hotz and his legal team are arguing that the SDK is owned by Sony Computer Entertainment of Japan, saying that Sony is dragging its feet to prove otherwise.
The case may come down to some fine wording in the SDK's documentation and code, but there's also the question of how much access Sony should have to Hotz's hard drives, and what they're allowed to look for. All this hinges on whether Sony's argument about the use of the SDK would lead a reasonable person to understand they were dealing with a party in California, and Sony seems to be playing games in dealing with the other side of the case.