How many times have your heard of someone getting his "bike" stolen? Even with it being locked. Even if you saw a bike theft in progress, would you be able to identify that a theft is even occuring. Especially if it's done in the day time? The crook could have a look out who signals that all is clear and one crack of a hammer or saw would break the lock. The Alarm lock could be a solution. It has an enbedded alarm that has a wire running through the entire lock. When the lock is cracked or cut, the disconnected wire causes the alarm to go off. It will bring the attention of everyone nearby creating witnesses. Just a thought during my spare time.
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The idea is sound but the lock is frequently not the element cut in a theft. A chain or cable is the element severed. This can probably be remedied by a design which requires the lock itself to be destroyed in the theft.
I think they already have that:
http://stores.ebay.com/Bike-Defense-Systems