PS3 "entitlements"

Say you purchase something from the PS Store. You can then log onto your account on someone elses ps3 and download that same item onto their system. At least I think that's how it works.
 
That doesnt seem right....then a group of people that have ps3's could all split the price of downloads and all get them for a smaller price. I'm highly doubting Sony would allow that shit.
 
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