PlayStation 3 won’t play used games?

The latest rumor, generated from several patent sites, claims that Sony has secured a patent for a disk technology that prevents the use of used, as well as pirated, software. From the registered patent description:

”A device and method for protection of legitimate software against used software and counterfeit software in recording media… A specific title code is read, and if this title code has been registered, the main unit shifts to a normal operation. If the code has not been registered, verification software is initiated… If matching does not occur, the disk is processed as illegitimate software… Since only titles for which legitimate software has actually been purchased and which have been initially registered in the machine table can be used, resale (so-called used software purchase) after purchase by an end-user becomes practically impossible.”
Does Sony plan to employ this technology in the PlayStation 3? Not likely. If so, PS3 owners would not be able to rent (used) games or borrow their friends’ games—or even purchase used games! Sure, the technology could be used for Blu-Ray movies, but for games? It just won’t go down like that… right?

i could see some mangement types saying, "great we can increase our software sales" but failing to see that such a system would put people of buying it!

That would kill the PS3. They aren't stupid enough to implement it.

I give less than a week before THAT is cracked to pieces.

I can't see them implementing that. No one would buy a system that you can't rent, borrow, or buy used games.