The court documents claim that the hacks violate the DMCA, and that "Already, pirated games are being packaged and distributed with these circumvention devices." Sony's restraining order is designed to "restrain" Hotz and the others from continuing to hack the PS3's protection measures, and from distributing their exploits.
Hotz doesn't seem worried about Sony's ire. "I would expect a company that prides itself on intellectual property to be well versed in the provisions of the law, so I am disappointed in Sony's current action," Hotz told the BBC. "I have spoken with legal counsel and I feel comfortable that Sony's action against me doesn't have any basis."