Damn, I've mixed up Kalisto and Echelon, sorry. It was Kalisto
who came to an agreement with Sega. See this
Slashdot article for further info.
Edit: actually, come to think of it, I'm pretty sure the story was nonsense anyway. Kalisto are notorious for lying/joking in their nfos. I don't think it's beyond the realms of possibility for a company to 'think outside the box' like this to tackle piracy, but not in this case.