This case has been going on since last year. This is why PS2 controllers have been suspended from manufacturing, as well as consoles, for sometime.
Why do you think they re-designed the PS3 controllers and people are complaining about their 'ugliness?!'
Microsoft, on the other hand, is smart and bought their way out. Too bad, why can't Sony just pay for their mistake instead of taking it to court? They get what they deserved, in my opinion.