Let's look at the two main reasons why people believe that Geohotz is being sued for:
1. Distribution of the master keys
First offf, keys are a form of data. Data can NOT be copyrighted, so all of you claiming that he broke copyright by distributing keys, please shut up. I cannot go to the patent office and ask to copyright the character array "Hello World!". The Master key provides a legal way to publish WITHOUT circumventing any securities. It's an intentionally made front door by Sony. They just didn't make the correct means to protect those keys. They would have no leg to stand on here.
2. Customisation of firmware
This is a shady area, because it's difficult to say whtether firmware code was modified, or only amendements were made. Ironically, Sony may have lost their only chance of nailing him, because they removed the OtherOS feature. Had they left it in, and GeoHotz modified the hypervisor drivers, then yes, it could have been a breach. However, this could very well be a new amendment from scratch.
