Here's the story... Bono did say the hat was iconic, but he's not speaking of it as a religious icon.
Bono in memorabilia court fight
U2 frontman Bono has accused the band's former stylist of blackmail in a court battle to try and stop her selling off possessions they want back.
Among the items - worth about £3,500 - are a pair of trousers and a hat once worn by the band's lead singer Bono.
Lola Cashman worked for U2 in the 1980s and wrote an unauthorised biography of the band.
Bono hit back at claims they had given items to Ms Cashman as gifts, saying they rarely gave away possessions.
'Iconic status'
"They sound like trivial items, they're really not. They are important items to the group and we take them seriously," he told the Dublin Circuit Civil Court.
"You may have wealth and power, but when someone is trying to push us around and blackmail us and threaten us with books, at a certain point you have to say 'Stop right there'," he said.
Bono - real name Paul Hewson - said the band occasionally gave memorabilia, but it would be to charity auctions.
He said he was particularly keen to have his Stetson hat returned because it had iconic status.
"It would be like the Edge (the band's guitarist) giving one of his guitars away. It is not something which will happen," he told the hearing.
Excessive price
He also told the court he had defended Ms Cashman against criticism from band members who had difficulties with her.
But after working with her for two years contract negotiations broke down because her price was considered excessive.
Bono said Ms Cashman had bought trousers of different sizes for him during the Joshua Tree tour.
"Sadly I put on weight all the time. Oscillate is a word you could use," he said.
He added: "It's not particularly embarrassing because it's likely I would fit them again, whether they were a smaller size or a larger size."
The star dismissed suggestions he had been in a euphoric mood after the last date of the tour in Arizona and prepared to give away items to Ms Cashman.
'Raunchy'
Ms Cashman told the court she had been brought into the tour personally by Bono to help update the band's image and had thought of the Stetsons to give the band a more "raunchy" look.
And the stylist said there had never been any suggestions since she left the band's employ that she had wrongly taken anything.
A former assistant stylist and assistant wardrobe person both told the court they had not been given items.
The court heard Ms Cashman shipped the items to her London home from Arizona where the band had been touring.
Polaroids
U2 are seeking about 200 Polaroid photos which were taken by Ms Cashman as well earrings and a souvenir sweatshirt.
Bandmate Larry Mullen was also at the courthouse with U2 manager Paul McGuinness.
The band recently returned to their home city to perform three homecoming concerts at Dublin's Croke Park, which attracted almost 250,000 people.
U2 are due to take part in the Live 8 concerts on 2 July, playing the London leg of the event in Hyde Park.
The case was adjourned until Wednesday.
and...
U2 possessions 'were not stolen'
A former stylist for rock band U2 has told a court in Dublin that mementoes of theirs she kept "were not stolen". Lola Cashman, who worked for the group in the 1980s, said it was not until 2002 that she became aware there was a problem over the items.
Ms Cashman added the items - including a hat and trousers worn by frontman Bono - were "just memorabilia" to her.
The band are seeking the return of the items in their court battle to try and stop her selling them off.
They wore them during their 1987 Joshua Tree tour, and other accessories include a pair of metal hoop earrings and a souvenir sweatshirt.
Ms Cashman told Dublin Circuit Civil Court she was contacted by a lawyer for U2 three years ago and felt "intimidated".
"I was incredibly frightened," she said.
"I did not steal those pieces. They were given to me," added Ms Cashman, who was recruited by the chart-topping band to update their image.
"I was proud of what I had achieved with the band. Bono liked wearing hats and I changed his style slightly," she said.
But U2's lawyer Paul Sreenan said she had exaggerated her role as stylist.
The court was played a video clip showing Bono purchasing a black Stetson - one of the items among the £3,500 worth of goods in contention.
Ms Cashman's lawyer later produced another hat claimed to be that in question, pointing out it was a different colour to the one shown in the video footage.
Ms Cashman is also taking defamation proceedings against U2 at the High Court in London - but they have been put on hold pending the outcome of this case.
She later told the court that items were given to her as gifts during quiet moments on tour with just her and Bono in the dressing room, which was why no crew members saw her receive them.
'Trivial items'
"I didn't think it was any big deal," said Ms Cashman.
She was also questioned as to why she had failed to mention the gifts in her book, written after her time with the band.
"I didn't write about it because obviously it wasn't interesting enough to put in my book," she said.
On the second day of proceedings, none of the members of U2 or manager Paul McGuinness were present in court.
On Tuesday, Bono hit back at claims they had given items to Ms Cashman as gifts, saying they rarely gave away possessions.
"They sound like trivial items, they're really not," he told the court. "They are important items to the group and we take them seriously,"
Judge Matthew Deery said that he hoped to deliver his judgment in the case next Tuesday.
The case is due to continue on Thursday, when Ms Cashman will resume her evidence.