If PCWorld is correct, then it looks like Sony's pending, PS3 2.20 firmware will have at least one little surprise for movie buffs. As if the inclusion of Blu-ray's BD-Live interactivity and the removal of the 2GB DivX and WMV file-size cap wasn't enough, PCWorld says that you can also expect the introduction of portable copy. With it, users will be able to copy a PSP formatted (and DRM'd) version of the film directly to their PSP -- no UMD required. Right, just like we saw demonstrated live back at CES in January.
Update: There's a rumor that Sony's portable copy would transcode any Blu-ray film into a PSP version. That's not how we understand it. The firmware update would just allow the PS3 to "see" the portable copy already burned into some Blu-ray discs and then make it available for transfer to your PSP. Think Digital Copy for Sony's gear, not Apple's.
Update 2: Sony just pinged us to say that Portable Copy won't be coming with the 2.20 release -- bummer. We'll be waiting, guys.