PS3 Users "Sharing" Downloaded Games?

From Game Stooge:

Apparently, some PS3 users are buying downloadable games such as flOw and Calling All Cars and then allowing friends and even strangers to also download a copy for free through some clearly questionable online exploits which they refer to as “sharing.” Essentially, this allows multiple PS3 users to download and have immediate access to the game while only one user actually pays for it.

Now, those who know more about this practice report some significant disadvantages to “sharing.” First, the sharer’s credit card account information, including online “wallet” contents, are accessible to the sharee. Second, “sharing” may inadvertently cause the sharer to lose his or her rights to the game if their PS3 loses data or needs to be replaced.

This sounds cool, but the disadvantages takes that "coolness" away.