Defendant Hotz is a well-known hacker who has gained notoriety for circumventing the technological protection measures in a number of sophisticated software and hardware systems. Id. at ¶20, Exh. S. Building on the FAIL0VERFLOW Defendants’ Circumvention Devices, Hotz circumvented certain other TPMs in the PS3 System, intentionally accessed the PS3 System without authorization, and misappropriated critical SCEA Keys (referred to hereinafter as the “Metldr Keys” or the “Root Keys”):
forgot to thank fail0verflow.... They had several keys but not the root key, I used their discoveries to find the [] root key.”
Id. at ¶21, Exh. T.3 The Root Keys, or “Metldr Keys,” that Hotz wrongfully compromised are part of a TPM in the PS3 System, and are necessary to authenticate code that runs on a critical level of that System. Mogilefsky Decl. ¶12. With access to this particular level, one can control crucial functions and operations of the PS3 System and execute code that will enable pirated video games to run on the PS3 System.
Knowing that the “Metldr Keys” can defeat TPMs in the PS3 System, Hotz began using these proprietary Keys as a component of a Circumvention Device that applies SCEA signatures to any file, effectively “tricking” the PS3 System into running unauthorized
programs. Mogilefsky Decl. ¶23. On January 2, 2011, Hotz published the Metldr Keys on his website under the banner “keys open doors.” Bricker Decl. at ¶23, Ex. V. By doing so, Hotz purposefully compromised the confidentiality of those Keys and invited other software pirates to incorporate the Keys into their own circumvention technology. Id. (quoting Hotz January
2nd post: “use this info wisely”). Hotz’s distribution of the Metldr Keys enabled software pirates to create and run unauthorized copies of video games. Mogilefsky Decl. ¶20